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

question 380

Essay

Dallman 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 70,000 machine-hours, total fixed manufacturing overhead cost of $287,000, and a variable manufacturing overhead rate of $3.50 per machine-hour.Required:a. Calculate the estimated total manufacturing overhead for the year.b. Calculate the predetermined overhead rate for the year.

Analyze and prepare income statements using both absorption and variable costing.

Understand the impact of production level changes on income under both costing methods.

Match costing concepts with their descriptions and applications.

Calculate and analyze contribution margins for specific products and regions.