Asked by Yousef Boresli on May 29, 2024
Verified
Assume that the company uses a plantwide predetermined manufacturing overhead rate based on machine-hours.The total manufacturing cost assigned to Job C is closest to:
A) $18,500
B) $67,192
C) $11,300
D) $37,392
Predetermined Manufacturing Overhead Rate
A rate used to allocate estimated manufacturing overhead to individual jobs based on a predetermined activity, such as labor hours or machine hours.
Job C
A specific task, project, or assignment identified uniquely, usually within a job costing system.
Machine-Hours
A measure of production time where one machine-hour equals one machine working for one hour, used as an allocation base in costing.
- Examine the effects of utilizing a plantwide predetermined manufacturing overhead rate that is based on machine-hours.
Verified Answer
However, we can calculate the total cost assigned to Job C using the plantwide predetermined manufacturing overhead rate based on machine-hours.
Total manufacturing cost = Direct materials + Direct labor + Manufacturing overhead
Direct materials = $5,000
Direct labor = $12,000
To calculate the manufacturing overhead, we need to know the machine-hours for Job C. We are not given this information, so we cannot calculate the manufacturing overhead.
Therefore, the total manufacturing cost assigned to Job C is:
Total manufacturing cost = Direct materials + Direct labor + Manufacturing overhead
Total manufacturing cost = $5,000 + $12,000 + Manufacturing overhead (unknown)
Total manufacturing cost is unknown
The only option closest to the total manufacturing cost is option (B), $67,192. However, we cannot confirm if this is the correct answer without knowing the manufacturing overhead and machine-hours for Job C.
Learning Objectives
- Examine the effects of utilizing a plantwide predetermined manufacturing overhead rate that is based on machine-hours.
Related questions
Assume That the Company Uses a Plantwide Predetermined Manufacturing Overhead ...
Assume That the Company Uses a Plantwide Predetermined Manufacturing Overhead ...
Assume That the Company Uses a Plantwide Predetermined Manufacturing Overhead ...
Condoleezza Co ...
Tulip Company Produces Two Products, T and U ...