Question

5) Ryans 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: 16 POINTS Total machine-hours 10,000 Total fixed manufacturing overhead cost $71,000 Variable manufacturing overhead per machine-hour $2.50 Recently Job P512 was completed with the following characteristics: Number of units in the job 30 Total machine-hours 60 Direct materials $870 Direct labor cost $2,400 Required: a. Calculate the predetermined overhead rate for the year. b. Calculate the amount of overhead applied to Job P512. c. Calculate the total job cost for Job P512. d. Calculate the unit product cost for Job P512

Answer 1

Instructions are listed below

Step-by-step explanation:

Giving the following information:

The company based its predetermined overhead rate for the current year on the following data:

Total machine-hours 10,000

Total fixed manufacturing overhead cost $71,000

Variable manufacturing overhead per machine-hour $2.50

Recently Job P512:

Number of units in the job 30

Total machine-hours 60

Direct materials $870

Direct labor cost $2,400

A) Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base= (71000/10000)+2.5= $9.6 per machine hour

B) Allocated overhead= 9.6*60 hours= $576

C) Total cost= 870+2400+576= $3846

D) Unitary cost= 3846/30= $128.2