Compute the plantwide predetermined overhead rate. 2. During the year, Job 400 was started and completed. The following information was available with respect to this job: Direct materials $ 320 Direct labor cost $ 260 Machine-hours used 34 Compute the total manufacturing cost assigned to Job 400. 3. If Job 400 includes 60 units, what is the unit product cost for this job

(A) The plant wide predetermined overhead allocation rate cannot be calculated because the question is incomplete.

(B) Total Manufacturing Cost = $9,160

(C) Product Cost per Unit = $152.67

Explanation:

(A) Predetermined Overhead Rate = Total overhead cost : Total machine hours

Input the data on Total Overhead Cost and calculate (as the data is absent in the question here)

Only machine hours is given.

(B) Total Manufacturing Cost = Direct Materials Cost + Direct Labour Cost + Manufacturing Overhead Cost

Since manufacturing overhead is absent, Total Manufacturing Cost is equal to

$320 + ($260 * 34hrs) = $320 + $8,840 = $9,160

(C) Product Cost per Unit = $9,160 : 60 units

Product Cost per Unit = $152.67

Missing details in the question:

Taveras Corporation is currently operating at 50% of its available manufacturing capacity. It uses a job-order costing system with a plantwide predetermined overhead rate based on machine-hours. At the beginning of the year, the company made the following estimates:

Machine-hours required to support estimated production 165,000

Fixed manufacturing overhead cost $1,980,000

Variable manufacturing overhead cost per machine-hour $2.00

Answer:

1. Predetermined Overhead Rate = $14 per machine-hour

2. Total Manufacturing Cost = $1056

3.

Explanation:

1. Calculating the plantwide predetermined overhead rate.

First, we need to calculate the estimated total overhead

This is calculated using the following formula

E = F + VM

Where F =

M = Machine-hours = 165,000

F = Fixed manufacturing overhead cost = $1,980,000

V = Variable manufacturing overhead cost per machine-hour = $2.00

By Substituton;

E = $1,980,000 + $2.00 * 165,000

E = $1,980,000 + $330,000

E = $2,310,000

The Predetermined Overhead Rate, P = E/M

By Substitution

P = $2,310,000/165,000

P = $14 per machine-hour

Hence, the Predetermined Overhead Rate is $14 per machine-hour

2. Calculating the total manufacturing cost assigned to Job 400

3. If Job 400 includes 60 units, the unit product cost for this job is $17.6 per unit

Given

Direct materials $ 320

Direct labor cost $ 260

Machine-hours used 34

First, we need to calculate the overhead applied.

Overhead Applied = Machine-hour used * Overhead Rate

Overhead Applied = 34 * 14

Overhead Applied = $476

Total Manufacturing Cost = Direct materials + Direct labor cost + Overhead Applied.

Total Manufacturing Cost = $320 + $260 + $476

Total Manufacturing Cost = $1056

3. If Job 400 includes 60 units, the unit product cost for this job is calculated by

Total Manufacturing Cost : Total units for production

= $1056/60

= $17.6 per unit