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1. Taveras Corporation currently operates at 50% of its available manufacturing
1. Taveras Corporation currently operates at 50% of its available manufacturing capacity. It uses job-order costing with a plantwide predetermined overhead rate based on machine-hours. At the beginning of the year, the company made the following estimates:
Machine-hours required to support estimated production185,000
Fixed manufacturing overhead cost$ 2,960,000
Variable manufacturing overhead cost per machine-hour$ 2.00
Required:
Compute the plantwide predetermined overhead rate.
During the year, Job P90 was started, completed, and sold to the customer for $2,900. The following information pertains to this job:Direct materials$ 1,334
Direct labor cost$ 957
Machine-hours used76
Compute the total manufacturing cost assigned to Job P90.
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