Collini Corporation has two production departments, Machining and Customizing. The company uses a job-order costing system and computes a predetermined overhead rate in each production department. The Machining Departmentâs predetermined overhead rate is based on machine-hours and the Customizing Departmentâs predetermined overhead rate is based on direct labor-hours. At the beginning of the current year, the company had made the following estimates:
Machining Customizing Machine-hours 17,000 15,000 Direct labor-hours 3,000 6,000 Total fixed manufacturing overhead cost $ 102,000 $ 61,200 Variable manufacturing overhead per machine-hour $ 1.70 Variable manufacturing overhead per direct labor-hour $ 4.10
During the current month the company started and finished Job T268. The following data were recorded for this job:
Job T268: Machining Customizing Machine-hours 80 30 Direct labor-hours 30 50 Direct materials $ 720 $ 380 Direct labor cost $ 900 $ 1,500
The total job cost for Job T268 is closest to:
Collini Corporation has two production departments, Machining and Customizing. The company uses a job-order costing system and computes a predetermined overhead rate in each production department. The Machining Departmentâs predetermined overhead rate is based on machine-hours and the Customizing Departmentâs predetermined overhead rate is based on direct labor-hours. At the beginning of the current year, the company had made the following estimates:
| Machining | Customizing | |||||
| Machine-hours | 17,000 | 15,000 | ||||
| Direct labor-hours | 3,000 | 6,000 | ||||
| Total fixed manufacturing overhead cost | $ | 102,000 | $ | 61,200 | ||
| Variable manufacturing overhead per machine-hour | $ | 1.70 | ||||
| Variable manufacturing overhead per direct labor-hour | $ | 4.10 | ||||
During the current month the company started and finished Job T268. The following data were recorded for this job:
| Job T268: | Machining | Customizing | ||||
| Machine-hours | 80 | 30 | ||||
| Direct labor-hours | 30 | 50 | ||||
| Direct materials | $ | 720 | $ | 380 | ||
| Direct labor cost | $ | 900 | $ | 1,500 | ||
The total job cost for Job T268 is closest to:
Related questions
Hickingbottom Corporation 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 Departmentâs predetermined overhead rate is based on machine-hours and the Finishing Departmentâs 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 | 17,000 | 15,000 | ||||
| Direct labor-hours | 1,000 | 7,000 | ||||
| Total fixed manufacturing overhead cost | $ | 96,900 | $ | 65,800 | ||
| Variable manufacturing overhead per machine-hour | $ | 2.00 | ||||
| Variable manufacturing overhead per direct labor-hour | $ | 3.60 | ||||
During the current month the company started and finished Job M381. The following data were recorded for this job:
| Job M381: | Forming | Finishing | ||
| Machine-hours | 80 | 30 | ||
| Direct labor-hours | 30 | 40 | ||
| Direct materials | $ | 840 | $ | 350 |
| Direct labor cost | $ | 750 | $ | 1,000 |
The predetermined overhead rate for the Forming Department is closest to:
Multiple Choice
$5.70 per machine-hour
$7.70 per machine-hour
$2.00 per machine-hour
$18.70 per machine-hour
Deloria Corporation has two production departments, Forming and Assembly. The company uses a job-order costing system and computes a predetermined overhead rate in each production department. The Forming Departmentâs predetermined overhead rate is based on machine-hours and the Assembly Departmentâs predetermined overhead rate is based on direct labor-hours. At the beginning of the current year, the company had made the following estimates:
| Forming | Assembly | |||||
| Machine-hours | 19,000 | 15,000 | ||||
| Direct labor-hours | 4,000 | 8,000 | ||||
| Total fixed manufacturing overhead cost | $ | 129,200 | $ | 77,600 | ||
| Variable manufacturing overhead per machine-hour | $ | 1.60 | ||||
| Variable manufacturing overhead per direct labor-hour | $ | 3.00 | ||||
During the current month the company started and finished Job T288. The following data were recorded for this job:
| Job T288: | Forming | Assembly | ||
| Machine-hours | 80 | 10 | ||
| Direct labor-hours | 30 | 40 | ||
| Direct materials | $ | 730 | $ | 380 |
| Direct labor cost | $ | 900 | $ | 1,200 |
The total amount of overhead applied in both departments to Job T288 is closest to:
Heroux Corporation has two manufacturing departments--Forming and Customizing. The company used the following data at the beginning of the year to calculate predetermined overhead rates:
| Forming | Customizing | Total | ||||
| Estimated total machine-hours (MHs) | 3,000 | 7,000 | 10,000 | |||
| Estimated total fixed manufacturing overhead cost | $ | 16,500 | $ | 20,300 | $ | 36,800 |
| Estimated variable manufacturing overhead cost per MH | $ | 1.70 | $ | 2.50 | ||
During the most recent month, the company started and completed two jobs--Job A and Job H. There were no beginning inventories. Data concerning those two jobs follow:
| Job A | Job H | |||
| Direct materials | $ | 12,800 | $ | 6,700 |
| Direct labor cost | $ | 24,300 | $ | 7,800 |
| Forming machine-hours | 2,000 | 1,000 | ||
| Customizing machine-hours | 2,800 | 4,200 | ||
Assume that the company uses departmental predetermined overhead rates with machine-hours as the allocation base in both production departments. The manufacturing overhead applied to Job A is closest to: (Round your intermediate calculations to 2 decimal places.)
