Tiff Corporation has two production departments, Casting and Assembly. The company uses a job-order costing system and computes a predetermined overhead rate in each production department. The Casting Department's predetermined overhead rate is based on machine-hours and the Assembly Department's predetermined overhead rate is based on direct labor-hours. At the beginning of the current year, the company had made the following estimates: Machine-hours Direct labor-hours Total fixed manufacturing overhead cost Variable manufacturing overhead per machine-hour Variable manufacturing overhead per direct labor-hour Job P131: Machine-hours During the current month the company started and finished Job P131. The following data were recorded for this job: Assembly 20 60 Direct labor-hours Casting 90 20 Casting The amount of overhead applied in the Assembly Department to Job P131 is closest to: Note: Round your intermediate calculations to 2 decimal places. 17,000 1,000 $ 129, 200 $ 1.80 Assembly 10,000 5,000 $ 46,500 $ 3.80
Tiff Corporation has two production departments, Casting and Assembly. The company uses a job-order costing system and computes a predetermined overhead rate in each production department. The Casting Department's predetermined overhead rate is based on machine-hours and the Assembly Department's predetermined overhead rate is based on direct labor-hours. At the beginning of the current year, the company had made the following estimates: Machine-hours Direct labor-hours Total fixed manufacturing overhead cost Variable manufacturing overhead per machine-hour Variable manufacturing overhead per direct labor-hour Job P131: Machine-hours During the current month the company started and finished Job P131. The following data were recorded for this job: Assembly 20 60 Direct labor-hours Casting 90 20 Casting The amount of overhead applied in the Assembly Department to Job P131 is closest to: Note: Round your intermediate calculations to 2 decimal places. 17,000 1,000 $ 129, 200 $ 1.80 Assembly 10,000 5,000 $ 46,500 $ 3.80
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter3: Process Cost Systems
Section: Chapter Questions
Problem 4E: The cost accountant for River Rock Beverage Co. estimated that total factory overhead cost for the...
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