Managerial Accounting

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Determination of job costs


Ryan Company uses normal costing system with a predetermined overhead rate based on machine-hours. At the start of the year, the company estimated manufacturing overhead for the year would be \$240,000 and machine hours used would be 16,000. The following information pertains to March of the current year:

Item Job 18 Job 26 Job 39
Work in process, March 1 \$17,000 \$28,000 \$31,000
Materials used in March \$4,000 \$4,800 \$7,200
Direct labor cost in March \$2,400 \$3,600 \$4,000
Machine hours in March 800 1,400 1,800

Actual manufacturing overhead costs incurred in March were \$32,000.

Determine the total cost of each job (in $).