Lupo Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours. The company

Lupo Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours. The company based its predetermined overhead rate for the current year on the following data: Total machine-hours 30,400 Total fixed manufacturing overhead cost $ 425,600 Variable manufacturing overhead per machine-hour $ 5 Recently, Job T687 was completed with the following characteristics: Number of units in the job 10 Total machine-hours 20 Direct materials $ 590 Direct labor cost $ 1,180 The total job cost for Job T687 is closest to . (Round your intermediate calculations to 2 decimal places.) Job-Order Costing: Under the job order costing system, each process is treated and accounted for separately as the system is used only when the produced goods are different from each other. Manufacturing overhead is allocated using a predetermined overhead rate and it comprises of both the variable component and the fixed component.

Answers

$2,880

Explanation:

Given that,

Total machine-hours = 30,300

Total fixed manufacturing overhead cost = $ 575,700

Variable manufacturing overhead per machine-hour = $ 4.00

For Job T687:

Number of units in the job = 10

Total machine-hours = 30

Direct materials = $730

Direct labor cost = $1,460

Total variable overhead estimated:

= Variable manufacturing overhead per machine-hour × Total machine-hours

= $4 × 30,300

= $121,200

Total overhead estimated:

= Total variable overhead estimated + Total fixed overhead estimated

= $121,200 + $575,700

= $696,900

Predetermined overhead rate:

= Total overhead estimated ÷ Total machine-hours

= $696,900 ÷  30,300

= $23 per machine hour

Total overhead applied:

= predetermined overhead rate × Total machine hours for Job T687

= $23 × 30

= $690

Total job cost:

= Direct material + Direct labor + Total overhead

= $730 + $1,460 + $690

= $2,880

job T687 total cost 2,151‬ dollars

Explanation:

frac{Cost: Of :Manufacturing :Overhead}{Cost :Driver}= Overhead :Rate

425,600 / 30,400 = 14 fixed overhead rate

14 fixed  + 5 variable = 19

Job T687

applied overhead:

ovehread 20 machine hours x 19 = 381

now we add the three cost components for the total cost:

direct materials       590

direct Labor            1,180

overhead                 381

              total         2,151‬

Manufacturing overhead applied 315

Total cost of Job T687 $2,040

Explanation:

Lupo Corporation

Estimated total manufacturing overhead cost = Estimated total fixed manufacturing overhead cost + Estimated variable overhead cost per unit of the allocation base × Estimated total amount of the allocation base

Hence:

$252,000 + ($2.10 per machine-hour × 30,000 machine-hours) = $252,000 + $63,000 = $315,000

Predetermined overhead rate = Estimated total manufacturing overhead cost ÷ Estimated total amount of the allocation base

= $315,000 ÷ 30,000 machine-hours = $10.50 per machine-hour

Overhead applied to a particular job = Predetermined overhead rate × Amount of the allocation base incurred by the job

= $10.50 per machine-hour × 30 machine-hours = $315

Direct materials$ 675

Direct labor 1,050

Manufacturing overhead applied 315

Total cost of Job T687 $2,040

Therefore the estimated total manufacturing overhead is closest to $315 and the Total cost of Job T687 is $2,040

Selling price= $273

Explanation:

Giving the following information:

The company based its predetermined overhead rate for the current year on the following data: Total machine-hours 32,600 Total fixed manufacturing overhead cost $ 195,600 Variable manufacturing overhead per machine-hour $ 4.00.

Job T687 was completed with the following characteristics: Number of units in the job 10 Total machine-hours 30 Direct materials $ 550 Direct labor cost $ 1,100

First, we need to calculate the estimated manufacturing overhead rate we need to use the following formula:

Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Estimated manufacturing overhead rate= (195,600/32,600) + 4= $10 per machine hour

Now, we need to calculate the total cost per unit:

Unitary cost= direct material + direct labor + allocated overhead

Unitary cost= (550/10) + (1,100/10) + (10*30)/10= $195

Selling price= 195*1.4= $273

The amount of overhead applied to Job T687 is closest to: $280.

Explanation:

Predetermined rate = Budgeted Overheads / Budget Activity

                                 = $ 425,600 /  30,400

                                 = $14.00 per machine-hour

Applied overheads to job T687 = Predetermined rate × Actual machine hours used

                                                     =  $14.00 × 20

                                                     =  $280

Conclusion :

The amount of overhead applied to Job T687 is closest to: $280.

Total cost= $1,900

Explanation:

Giving the following information:

Total machine-hours 32,600

Total fixed manufacturing overhead cost $ 195,600

Variable manufacturing overhead per machine-hour $ 4.00

Job T687:

Total machine-hours 30

Direct materials $ 550

Direct labor cost $ 1,100

First, we need to calculate the predetermined overhead rate:

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Predetermined manufacturing overhead rate= (195,600/32,600) + 4

Predetermined manufacturing overhead rate= $10 per machine hour

Now, we can determine the total cost:

Total cost= direct material + direct labor + allocated overhead

Total cost= 500 + 1,100 + 10*30

Total cost= $1,900

Total cost= $2,040

Explanation:

Giving the following information:

Total machine-hours 30,000

Total fixed manufacturing overhead cost $ 252,000

Variable manufacturing overhead per machine-hour $ 2.10

Job T687:

Total machine-hours 30

Direct materials $675

Direct labor cost $1,050

First, we need to calculate the estimated overhead rate:

Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Estimated manufacturing overhead rate= (252,000/30,000) +2.1= $10.5 per machine-hour

Now, we can calculate the total cost of Job T687:

Total cost= direct material + direct labor + allocated overhead

Total cost= 675 + 1,050 + (10.5*30)= $2,040

Total estimated manufacturing overhead= $315,000

Explanation:

Giving the following information:

Estimates:

Total machine-hours 30,000

Total fixed manufacturing overhead cost $ 252,000

Variable manufacturing overhead per machine-hour $ 2.10

Total estimated manufacturing overhead= fixed overhead + total variable overhead

Total estimated manufacturing overhead= 252,000 + 30,000*2.1

Total estimated manufacturing overhead= $315,000

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