In: Accounting
Harootunian 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: Total machine-hours 80,000 Total fixed manufacturing overhead cost $ 312,000 Variable manufacturing overhead per machine-hour $ 2.10 Recently, Job T629 was completed with the following characteristics: Number of units in the job 50 Total machine-hours 200 The estimated total manufacturing overhead is closest to what?
A |
Variable overhead per machine hour |
$ 2.10 |
B |
Total Machine hours |
80,000 |
C = A x B |
Total Estimated Variable Overhead |
$ 168,000.00 |
D |
Total Fixed Overhead cost |
$ 312,000.00 |
E = C+D |
Estimated Total Manufacturing Overhead |
$ 480,000.00 |
Answer = $ 480,000
A |
Estimated Total Manufacturing Overhead |
$ 480,000.00 |
B |
Total Machine hours |
80,000 |
C = A/B |
Overhead per machine hours |
$ 6.00 |
D |
No. of machine hours for Job T629 |
200 |
E=C x D |
Overhead assigned to Job T629 |
$ 1,200.00 |
F |
Total Units |
50 |
G = E/F |
Overhead per unit |
$ 24.00 |