Saxon Corporation Uses a Job-Order Costing System with a Single

question 195

Essay

Saxon Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours. The company based its predetermined overhead rate for the current year on 10,000 machine-hours, total fixed manufacturing overhead cost of $91,000, and a variable manufacturing overhead rate of $2.40 per machine-hour. Job K373, which was for 60 units of a custom product, was recently completed. The job cost sheet for the job contained the following data:
Required:
a. Calculate the estimated total manufacturing overhead for the year.
b. Calculate the predetermined overhead rate for the year.
c. Calculate the amount of overhead applied to Job K373.
d. Calculate the total job cost for Job K373.
e. Calculate the unit product cost for Job K373.

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