XYZ has two production departments, Forming and Finishing. The company uses a job-order costing system and computes a predetermined overhead rate in each production department. The Forming Department's predetermined overhead rate is based on machine-hours and the Finishing 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: Forming Finishing Machine-hours 18,000 14,000 Direct labor-hours 2,000 8,000 Total fixed manufacturing overhead cost OMR 99,000 OMR 70,400 Variable manufacturing overhead per machine-hour OMR 2.10 Variable manufacturing overhead per direct labor-hour OMR 3.90 During the current month the company started and finished Job PS5. The following data were recorded for this job: Job PS5: Forming Finishing Machine-hours 90 20 Direct labor-hours 30 60 Direct materials OMR 940 OMR 350 Direct labor cost OMR 960 OMR 1920 The total job cost for Job PS5 is closest to: O a. None of the given answers b. OMR 5,616 C. OMR 5,652

XYZ has two production departments, Forming and Finishing. The company uses a job-order costing system and computes a predetermined overhead rate in each production department. The Forming Department's predetermined overhead rate is based on machine-hours and the Finishing 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: Forming Finishing Machine-hours 18,000 14,000 Direct labor-hours 2,000 8,000 Total fixed manufacturing overhead cost OMR 99,000 OMR 70,400 Variable manufacturing overhead per machine-hour OMR 2.10 Variable manufacturing overhead per direct labor-hour OMR 3.90 During the current month the company started and finished Job PS5. The following data were recorded for this job: Job PS5: Forming Finishing Machine-hours 90 20 Direct labor-hours 30 60 Direct materials OMR 940 OMR 350 Direct labor cost OMR 960 OMR 1920 The total job cost for Job PS5 is closest to: O a. None of the given answers b. OMR 5,616 C. OMR 5,652

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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