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Dotsero Technology, Inc., has a job-order costing system. The company uses predetermined overhead rates in applying...

Dotsero Technology, Inc., has a job-order costing system. The company uses predetermined overhead rates in applying manufacturing overhead cost to individual jobs. The predetermined overhead rate in Department A is based on machine-hours, and the rate in Department B is based on direct labor hours. At the beginning of the most recent year, the company's management made the following estimates for the year.

Dept. A Dept. B

Machine-hours. . . . . . . . . . . . . . . 30,000 60,000

Direct labor-hours. . . . . . . . . . . . .70,000 20,000

Manufacturing overhead cost. . . . $420,000 $600,000

Job 243 entered into production on April 1 and was completed on May 12. The company's actual cost records show the following information about the job.

Dept. A Dept. B

Machine-hours. . . . . . . . . . . . . . . . . . . 250 60

Direct labor-hours. . . . . . . . . . . . . . . . 70 120

Direct materials cost. . . . . . . . . . . . . . . $840 $1,100

Direct labor cost. . . . . . . . . . . . . . . . . . $610 $880

Compute the total manufacturing cost of Job 243. Note: “Total manufacturing cost” is the sum of direct materials, direct labor, and applied manufacturing overhead cost in both Department A and Department B.

$11,170

$10,240

$7,100

$5,580

$10,530

$4,950

$7,770

$10,630

Solutions

Expert Solution

Department
A B
Machine Hour 30000 60000
DLH 70000 20000
MOH Cost 420000 600000
Predetermined OH Rate Calculation:
Department
A B
A MOH Cost 420000 600000
B Machine Hour 30000
DLH 20000
Rate 14.00 30.00
Per MH Per DLH
Total Manufacturing Cost for Job 243:
Department
A B
Direct Material 840 1100 1940.0
Direct Labor 610 880 1490.0 MOH
MOH Cost 3500 3600 7100.0 14*250 30*120
4950 5580 10530.0
Answer is 10530

ekkarill92 answered 2 years ago
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