Tiff Corporation has two production departments, Casting and Assembly. The company uses a job-order costing system and computes a predetermined overhead rate in each production department. The Casting Department's predetermined overhead rate is based on machine-hours and the Assembly Department's predetermined overhead rate is based on direct labor-hours. At the beginning of the current year, the company had made the following estimates: Machine-hours Direct labor-hours Total fixed manufacturing overhead cost Variable manufacturing overhead per machine-hour Variable manufacturing overhead per direct labor-hour Job P131: Machine-hours During the current month the company started and finished Job P131. The following data were recorded for this job: Assembly 20 60 Direct labor-hours Casting 90 20 Casting The amount of overhead applied in the Assembly Department to Job P131 is closest to: Note: Round your intermediate calculations to 2 decimal places. 17,000 1,000 $ 129, 200 $ 1.80 Assembly 10,000 5,000 $ 46,500 $ 3.80
Tiff Corporation has two production departments, Casting and Assembly. The company uses a job-order costing system and computes a predetermined overhead rate in each production department. The Casting Department's predetermined overhead rate is based on machine-hours and the Assembly Department's predetermined overhead rate is based on direct labor-hours. At the beginning of the current year, the company had made the following estimates: Machine-hours Direct labor-hours Total fixed manufacturing overhead cost Variable manufacturing overhead per machine-hour Variable manufacturing overhead per direct labor-hour Job P131: Machine-hours During the current month the company started and finished Job P131. The following data were recorded for this job: Assembly 20 60 Direct labor-hours Casting 90 20 Casting The amount of overhead applied in the Assembly Department to Job P131 is closest to: Note: Round your intermediate calculations to 2 decimal places. 17,000 1,000 $ 129, 200 $ 1.80 Assembly 10,000 5,000 $ 46,500 $ 3.80
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter7: The Master Budget And Flexible Budgeting
Section: Chapter Questions
Problem 12P: Overhead application rate Roll Tide Manufacturing Inc. uses a job order cost system and standard...
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Question
![Tiff Corporation has two production departments, Casting and Assembly. The company uses a job-order costing system and computes a predetermined overhead rate in
each production department. The Casting Department's predetermined overhead rate is based on machine-hours and the Assembly Department's predetermined
overhead rate is based on direct labor-hours. At the beginning of the current year, the company had made the following estimates:
Machine-hours
Direct labor-hours
Total fixed manufacturing overhead cost
Variable manufacturing overhead per machine-hour
Variable manufacturing overhead per direct labor-hour
Job P131:
Machine-hours
During the current month the company started and finished Job P131. The following data were recorded for this job:
Assembly
20
60
Direct labor-hours
Casting
90
20
Casting
The amount of overhead applied in the Assembly Department to Job P131 is closest to:
Note: Round your intermediate calculations to 2 decimal places.
17,000
1,000
$ 129, 200
$ 1.80
Assembly
10,000
5,000
$ 46,500
$ 3.80](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc80a8a85-82ce-4b91-9319-267a25cd5d83%2F4a2dce69-90ea-4543-a445-268ae5ac9403%2Fcrldgvf_processed.png&w=3840&q=75)
Transcribed Image Text:Tiff Corporation has two production departments, Casting and Assembly. The company uses a job-order costing system and computes a predetermined overhead rate in
each production department. The Casting Department's predetermined overhead rate is based on machine-hours and the Assembly Department's predetermined
overhead rate is based on direct labor-hours. At the beginning of the current year, the company had made the following estimates:
Machine-hours
Direct labor-hours
Total fixed manufacturing overhead cost
Variable manufacturing overhead per machine-hour
Variable manufacturing overhead per direct labor-hour
Job P131:
Machine-hours
During the current month the company started and finished Job P131. The following data were recorded for this job:
Assembly
20
60
Direct labor-hours
Casting
90
20
Casting
The amount of overhead applied in the Assembly Department to Job P131 is closest to:
Note: Round your intermediate calculations to 2 decimal places.
17,000
1,000
$ 129, 200
$ 1.80
Assembly
10,000
5,000
$ 46,500
$ 3.80
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