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

question 227

Essay

Posson 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 20,000 machine-hours, total fixed manufacturing overhead cost of $130,000, and a variable manufacturing overhead rate of $3.00 per machine-hour. Job K789, which was for 10 units of a custom product, was recently completed. The job cost sheet for the job contained the following data:
Required:
a. Calculate the predetermined overhead rate for the year.
b. Calculate the amount of overhead applied to Job K789.
c. Calculate the total job cost for Job K789.
d. Calculate the unit product cost for Job K789.

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Definitions:

Collaboration

The action of working with others to produce or create something, typically implying a joint effort towards a common goal.

Socialization

Socialization is the process by which individuals learn and adopt the norms, values, behaviors, and social skills appropriate to their society or specific groups within it.

New Members

Individuals who have recently joined a team, organization, or group.

External Level

The level at which an organization interacts with and responds to external forces and stakeholders outside of its immediate operational scope.