Reference no: EM131817776

Question - Packard Products uses a job-costing system for its units, which pass from the Machining Department, to the Assembly Department, to finished-goods inventory. The Machining Department is heavily automated; in contrast, the Assembly Department performs a number of manual-assembly activities. The following information relates to the Machining Department for the year just ended:

Budgeted manufacturing overhead $8,000,000

Actual manufacturing overhead 7,975,000

Budgeted machine hours 500,000

Actual machine hours 510,000

The Machining Department data that follow pertain to job no. 243, the only job in production at year-end.

Direct materials $64,800

Direct labor cost 35,200

Machine hours 450

Required:

A. Assuming the use of normal costing, calculate the predetermined overhead rate that is used in the Machining Department.

B. Compute the cost of the Machining Department's year-end work-in-process inventory.