Saved Help Save &Exit; Submit Check my work Yancey Productions is a film studio

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Saved Help Save &Exit; Submit Check my work Yancey Productions is a film studio that uses a job-order costing system. The company's direct materiais consist of items such as costumes and props. Its direct labor includes each film's actors, directors, and extras. The company's overhead costs include items such as utilities, depreciation of equipment, senior management salaries, and wages of maintenance workers. Yancey applies its overhead cost to films based on direct labor-dollars. At the beginning of the year, Yancey made the following estimates ook Direct labor-dollara to support all productione,300.00 Fixed overhead cost Variable overhead coat per direct labor-dollar rint 4,380,000 0.06 Required: 1. Compute the predetermined overhead rate. 2. During the year, Yancey produced a film titled You Can Say That Again thet ineurred the following costs: Direct materials Direct labor cost 1,412,000 s 2,190,000 Compute the total job cost for this particular film. Complete the question by entering your answers in the tabs given below Prev 10f 5 Next >

Explanation / Answer

a) Predetermine overhead rate = 4380000/7300000+0.06 = 0.66 per direct labour dollar

b) Job cost sheet :

Direct material 1412000 Direct labour 2190000 Overhead applied (2190000*.66) 1445400 Total cost 5047400

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