Please help finding solution for this problem Required : (1) Predertmined overhead rate cutting and finishing department REquired : (2)Total Mafacturing cost White Company has two departments, Cutting and Finishing. The company uses a job-order costing system and computes a predetermined overhead rate in each department. The Cutting Department bases its rate on machine-hours, and the Finishing Department bases its rate on direct labor-hours. At the beginning of the year, the company made the following estimates: Department Cutting Finishing Direct labor-hours 8,800 62,000 Machine-hours 65,700 1,500 Total fixed manufacturing overhead cost $ 380,000 $ 489,000 Variable manufacturing overhead per machine-hour $ 2.00 — Variable manufacturing overhead per direct labor-hour — $ 4.75 Department Cutting Finishing Direct labor-hours 4 12 Machine-hours 90 4 Direct materials $ 720 $ 360 Direct labor cost $ 92 $ 276 Using the predetermined overhead rates that you computed in requirement (1), compute the total manufacturing cost assigned to Job 203.
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
Please help finding solution for this problem
Required : (1) Predertmined overhead rate cutting and finishing department
REquired : (2)Total Mafacturing cost
White Company has two departments, Cutting and Finishing. The company uses a
| Department | ||||
| Cutting | Finishing | |||
| Direct labor-hours | 8,800 | 62,000 | ||
| Machine-hours | 65,700 | 1,500 | ||
| Total fixed manufacturing overhead cost | $ | 380,000 | $ | 489,000 |
| Variable manufacturing overhead per machine-hour | $ | 2.00 | — | |
| Variable manufacturing overhead per direct labor-hour | — | $ | 4.75 | |
| Department | ||||||||
| Cutting | Finishing | |||||||
| Direct labor-hours | 4 | 12 | ||||||
| Machine-hours | 90 | 4 | ||||||
| Direct materials | $ | 720 | $ | 360 | ||||
| Direct labor cost | $ | 92 | $ | 276 | ||||
Using the predetermined overhead rates that you computed in requirement (1), compute the total
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