hw c4.3 WoodGrain Technology makes home office furniture from fine hardwoods. Th

Question

hw c4.3

WoodGrain Technology makes home office furniture from fine hardwoods. The company uses a job-order costing system and predetermined overhead rates to apply manufacturing overhead cost to jobs. The predetermined overhead rate in the Preparation Department is based on machine hours, and the rate in the Fabrication Department is based on direct labor-hours. At the beginning of the year, the company’s management made the following estimates for the year:

      

Job 127 was started on April 1 and completed on May 12. The company's cost records show the following information concerning the job:

Department Preparation Fabrication Machine-hours 89,000 37,000 Direct labor-hours 34,500 59,600 Direct materials cost $ 191,000 $ 201,000 Direct labor cost $ 273,000 $ 510,000 Fixed manufacturing overhead cost $ 222,500 $ 560,240 Variable manufacturing overhead per machine-hour $ 2.60 - Variable manufacturing overhead per direct labor-hour - $ 4.60

Explanation / Answer

Total Overhead Cost 3726

Preparation Fixed manufacturing overhead cost 222500 Machine-hours 89000 Fixed overhead Rate per MH =22500/89000 2.5 Variable overhead Rate 2.6 Predetermined Overhead Rate 2.5+2.6 5.1

Related Questions

Navigate

• Browse (All)
• Browse H
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.