Reference no: EM133148443
Question - 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 170,000
Fixed manufacturing overhead cost $1,700,000
Variable manufacturing overhead cost per machine-hour $2.00
Required -
1. Compute the plantwide predetermined overhead rate.
2. During the year, Job P90 was started, completed, and sold to the customer for $2,000. The following information was available with respect to this job:
Direct materials $920
Direct labor cost $660
Machine-hours used 73
Compute the total manufacturing cost assigned to Job P90.
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