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    Total Cost Assigned to Job

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    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.

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    https://brainmass.com/business/accounting/total-cost-assigned-job-516678

    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.

    $2.19

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