Reference no: EM132597944

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 $205,000

Fixed manufacturing overhead cost $3,075,000

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 $3,300. The following information was available with respect to this job:

Direct materials $1,518

Direct labor cost $1,089

Machine-hours used 80

Compute the total manufacturing cost assigned to Job P90.