Explore BrainMass

Total Cost Assigned to Job

XYZ corporation has two departments, Machining and Assembly. The company uses a job-order costing system and computes a predetermined overhead rate in each department. The Machining Department bases its rate on machine hours and the Assembly Department bases its rate on direct labor cost. At the beginning of the year, the company made the following estimates:

Machining Assembly
Direct Labor Hours 11, 000 9, 000
Machine-Hours 23, 000 14, 000
Manufacturing Overhead Cost $368, 000 $312, 000
Direct Labor Cost $102, 100 $78, 000

Assume also the following actual data on Job #219 which was started and completed during the year:

Machining Assembly
Direct Labor Costs 104 98
Machine Hours 189 290
Materials Requisitioned $33, 400 $44, 200
Direct Labor Cost $4, 200 $9, 600

What is the total cost assigned to job #219? Show computations.

Solution Preview

Predetermined overhead rate= Manufacturing overhead cost/ Base ...

Solution Summary

The solution shows how total cost is calculated by showing steps taken to reach solution.