Job-Order Costing: Calculating unit product costs
Custom 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 the following data:
Total machine-hours 10,000
Total fixed manufacturing overhead cost $71,000
Variable manufacturing overhead per machine-hour $ 2.50
Recently Job P512 was completed with the following characteristics:
Number of units in the job 30
Total machine-hours 60
Direct materials $ 870
Direct labor cost $2,400
Required:
a. Estimate the total manufacturing overhead cost.