The Custom Metal Works produces castings and other metal parts to customer speci
ID: 2502835 • Letter: T
Question
The Custom Metal Works produces castings and other metal parts to customer specifications. The company uses a job-order costing system and applies overhead costs to jobs on the basis of machine hours. At the beginning of the year, the company used a cost formula to estimate that it would incur $4,263,600 in manufacturing overhead cost at an activity level of 561,000 machine-hours.
The company had no work in process at the beginning of the year. The company spent the entire month of January working on one large order
The Custom Metal Works produces castings and other metal parts to customer specifications. The company uses a job-order costing system and applies overhead costs to jobs on the basis of machine hours. At the beginning of the year, the company used a cost formula to estimate that it would incur $4,263,600 in manufacturing overhead cost at an activity level of 561,000 machine-hours.
The company had no work in process at the beginning of the year. The company spent the entire month of January working on one large order
Explanation / Answer
finished goods 30000
WIP 300000
300000/40000=7.5 per machine hour
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.