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 calculated its predetermined overhead rate for the current year using 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 details:
- Number of units in the job: 10
- Total machine-hours: 20
- Direct materials cost: $590
- Direct labor cost: $1,180
What is the total job cost for Job T687? (Round all intermediate calculations to two decimal places.)
Note: Under the job-order costing system, each process is treated and accounted for separately. This system is typically used when the goods produced are distinct. Manufacturing overhead is allocated using a predetermined overhead rate, which consists of both a variable and a fixed component.
8 Answers
$2,880Explanation:Given that,Total machine-hours = 30,300 Total fixed manufacturing overhead cost = $ 575,700Variable manufacturing overhead per machine-hour = $ 4.00For Job T687:Number of units in the job = 10Total machine-hours = 30 Direct materials = $730Direct labor cost = $1,460Total variable overhead estimated:= Variable manufacturing overhead per machine-hour à Total machine-hours= $4 à 30,300= $121,200Total overhead estimated:= Total variable overhead estimated + Total fixed overhead estimated= $121,200 + $575,700= $696,900Predetermined overhead rate:= Total overhead estimated ÷ Total machine-hours= $696,900 ÷  30,300= $23 per machine hourTotal overhead applied:= predetermined overhead rate à Total machine hours for Job T687= $23 à 30= $690Total job cost:= Direct material + Direct labor + Total overhead= $730 + $1,460 + $690= $2,880
job T687 total cost 2,151⬠dollarsExplanation: 425,600 / 30,400 = 14 fixed overhead rate14 fixed  + 5 variable = 19Job T687applied overhead:ovehread 20 machine hours x 19 = 381now we add the three cost components for the total cost:direct materials    590direct Labor       1,180overhead         381        total     2,151â¬
Manufacturing overhead applied 315Total cost of Job T687 $2,040Explanation:Lupo CorporationEstimated total manufacturing overhead cost = Estimated total fixed manufacturing overhead cost + Estimated variable overhead cost per unit of the allocation base à Estimated total amount of the allocation base Hence: $252,000 + ($2.10 per machine-hour à 30,000 machine-hours) = $252,000 + $63,000 = $315,000Predetermined overhead rate = Estimated total manufacturing overhead cost ÷ Estimated total amount of the allocation base = $315,000 ÷ 30,000 machine-hours = $10.50 per machine-hourOverhead applied to a particular job = Predetermined overhead rate à Amount of the allocation base incurred by the job = $10.50 per machine-hour à 30 machine-hours = $315Direct materials$ 675Direct labor 1,050Manufacturing overhead applied 315Total cost of Job T687 $2,040Therefore the estimated total manufacturing overhead is closest to $315 and the Total cost of Job T687 is $2,040
Selling price= $273Explanation: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 $ 1,100First, 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 hourNow, we need to calculate the total cost per unit:Unitary cost= direct material + direct labor + allocated overheadUnitary cost= (550/10) + (1,100/10) + (10*30)/10= $195Selling 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-hourApplied overheads to job T687 = Predetermined rate à Actual machine hours used                            =  $14.00 à 20                            =  $280Conclusion :The amount of overhead applied to Job T687 is closest to: $280.
Total cost= $1,900Explanation: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 $ 1,100First, we need to calculate the predetermined overhead rate:Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation basePredetermined manufacturing overhead rate= (195,600/32,600) + 4Predetermined manufacturing overhead rate= $10 per machine hourNow, we can determine the total cost:Total cost= direct material + direct labor + allocated overheadTotal cost= 500 + 1,100 + 10*30Total cost= $1,900
Total cost= $2,040Explanation: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 $1,050First, we need to calculate the estimated overhead rate:Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation baseEstimated manufacturing overhead rate= (252,000/30,000) +2.1= $10.5 per machine-hourNow, we can calculate the total cost of Job T687:Total cost= direct material + direct labor + allocated overheadTotal cost= 675 + 1,050 + (10.5*30)= $2,040
Total estimated manufacturing overhead= $315,000Explanation: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 overheadTotal estimated manufacturing overhead= 252,000 + 30,000*2.1Total estimated manufacturing overhead= $315,000
Want to answer this question?
Join our community to share your knowledge!