Reference no: EM132575028

Taveras Corporation is currently operating at 50% of its available manufacturing capacity. It uses a job-order costing system 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 production        240,000

Fixed manufacturing overhead cost                                        $4,320,000

Variable manufacturing overhead cost per machine-hour                    $2.00

Required:

Question 1. Compute the plantwide predetermined overhead rate.

Question 2. During the year, Job P90 was started, completed, and sold to the customer for $4,000. The following information was available with respect to this job:

Direct materials                        $1,840

Direct labor cost                         $1,320

Machine-hours used                          87

Compute the total manufacturing cost assigned to Job P90.