Twinkle Ornaments Company uses job costing.Twinkle Ornaments Company has two departments,Trimming and Finishing.Manufacturing overhead is allocated based on direct labor cost in the Trimming Department and direct labor hours in the Finishing Department.The following additional information is available:

Actual data for completed Job No.650 is as follows:

What is the total manufacturing overhead cost for Job No.650?

Question

Twinkle Ornaments Company uses job costing.Twinkle Ornaments Company has two departments,Trimming and Finishing.Manufacturing overhead is allocated based on direct labor cost in the Trimming Department and direct labor hours in the Finishing Department.The following additional information is available:

Actual data for completed Job No.650 is as follows:

What is the total manufacturing overhead cost for Job No.650?

Actual data for completed Job No.650 is as follows:

What is the total manufacturing overhead cost for Job No.650?

Quizplus · Accepted Answer

A)$400,000 / 320,000 = 125% Trim rate
$300,000 / 40,000 = $7.50 Finishing rate
($35,400 × 125 %)+ (5,000 × $7.50)= $81,750

Twinkle Ornaments Company Uses Job Costing