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    Job order costing

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    The information is for both parts - For 20x5, supply manufacturing accounting records contain the following:

    Estimated manufacturing overhead costs $100,000
    Actual manufacturing overhead costs $120,000
    Estimated machine hours $20,000
    Actual machine hours $25,000
    * With machine being the only cost driver *

    1) Using job order costing, the 20x5 predetermined support cost driver rate is
    - $4.00,
    $4.80,
    $5.00, or
    $6.00 per machine hour

    2) Using job order costing, the amount of support costs allocated to jobs during 20x5 is
    - $100,000,
    $120,000,
    $125,000, or
    $150,000

    © BrainMass Inc. brainmass.com March 4, 2021, 6:12 pm ad1c9bdddf
    https://brainmass.com/business/job-order-costing/job-order-costing-34291

    Solution Preview

    1) Using job order costing, the 20x5 predetermined support cost driver rate is - $4.00, $4.80, $5.00, or $6.00 per machine hour

    Estimated machine hours = 20,000
    Estimated manufacturing overhead costs = $100,000

    Predetermined overhead rate (POHR) = ...

    Solution Summary

    Using Job order costing, calculates predetermined support cost driver rate and amount of support costs allocated to jobs.

    $2.49

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