Answer:
1. predetermined overhead rate= 1.3
2. Total cost= $7,195,300
Explanation:
Giving the following information:
Direct labor-dollars to support all productions $ 8,370,000.
Fixed overhead costs $ 5,022,000.
Variable overhead cost per direct labor-dollar $ 0.07.
Yancey applies its overhead cost to films based on direct labor-dollars.
1. Compute the predetermined overhead rate.
predetermined overhead rate= Estimated total overhead cost/Estimated total amount of the allocation base
predetermined overhead rate= (0.7*8370000+5022000)/ 8370000
predetermined overhead rate= 10881000/8370000= 1.3
2. Compute the total job cost for this particular film.
Direct materials $ 1,420,000
Direct labor cost $ 2,511,000
Overhead= 2511000*1.3= 3,264,300
Total cost= $7,195,300