A company has two manufacturing departments-Cutting an predetermined overhead rates: Estimated total machine-hours (MHS) Estimated total fixed manufacturing overhead cost Estimated variable manufacturing overhead cost per $ MH irect materials rect labor cost tting machine-hours aining machine-hours Job A $15,000 $20,000 200 600 Job B $7,700 $6,400 Cutting 2,000 uring the most recent month, the company started and completed two jobs-Job A and Job B. There were no beginning inventories. Data concerning ose two jobs follow: 300 500 $ 6,600 1.00 Staining 5,000 $ 23,400 $ 2.00 Total 7,000 $ 30,000 ne that the company uses a plantwide predetermined manufacturing overhead rate based on machine-hours and uses a markup of 50% on acturing cost to establish selling prices. The calculated selling price for Job A is closest to: (Round your intermediate calculations to 2 deci
A company has two manufacturing departments-Cutting an predetermined overhead rates: Estimated total machine-hours (MHS) Estimated total fixed manufacturing overhead cost Estimated variable manufacturing overhead cost per $ MH irect materials rect labor cost tting machine-hours aining machine-hours Job A $15,000 $20,000 200 600 Job B $7,700 $6,400 Cutting 2,000 uring the most recent month, the company started and completed two jobs-Job A and Job B. There were no beginning inventories. Data concerning ose two jobs follow: 300 500 $ 6,600 1.00 Staining 5,000 $ 23,400 $ 2.00 Total 7,000 $ 30,000 ne that the company uses a plantwide predetermined manufacturing overhead rate based on machine-hours and uses a markup of 50% on acturing cost to establish selling prices. The calculated selling price for Job A is closest to: (Round your intermediate calculations to 2 deci
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter5: Process Cost Accounting—general Procedures
Section: Chapter Questions
Problem 7E: The records of Stone Inc. reflect the following data: Work in process, beginning of month4,000 units...
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Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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![A company has two manufacturing departments-Cutting and Staining. The company used the following data at the beginning of the year to calculate
predetermined overhead rates:
Estimated total machine-hours (MHS)
$
Estimated total fixed manufacturing overhead cost
Estimated variable manufacturing overhead cost per $
MH
Direct materials
Direct labor cost
Cutting machine-hours
Staining machine-hours
Job A
$15,000
$20,000
During the most recent month, the company started and completed two jobs-Job A and Job B. There were no beginning inventories. Data concerning
those two jobs follow:
200
600
Job B
$7,700
$6,400
Cutting
2,000
6,600
1.00
300
500
Staining
5,000
$ 23,400
2.00
$
Total
7,000
$ 30,000
Assume that the company uses a plantwide predetermined manufacturing overhead rate based on machine-hours and uses a markup of 50% on
manufacturing cost to establish selling prices. The calculated selling price for Job A is closest to: (Round your intermediate calculations to 2 decima
places.)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa0e66dc0-33a7-486a-ab2a-7a4deeb92994%2F05d2a4a2-6a2c-49c7-a9d6-316aecd3b617%2Fqd3agj_processed.jpeg&w=3840&q=75)
Transcribed Image Text:A company has two manufacturing departments-Cutting and Staining. The company used the following data at the beginning of the year to calculate
predetermined overhead rates:
Estimated total machine-hours (MHS)
$
Estimated total fixed manufacturing overhead cost
Estimated variable manufacturing overhead cost per $
MH
Direct materials
Direct labor cost
Cutting machine-hours
Staining machine-hours
Job A
$15,000
$20,000
During the most recent month, the company started and completed two jobs-Job A and Job B. There were no beginning inventories. Data concerning
those two jobs follow:
200
600
Job B
$7,700
$6,400
Cutting
2,000
6,600
1.00
300
500
Staining
5,000
$ 23,400
2.00
$
Total
7,000
$ 30,000
Assume that the company uses a plantwide predetermined manufacturing overhead rate based on machine-hours and uses a markup of 50% on
manufacturing cost to establish selling prices. The calculated selling price for Job A is closest to: (Round your intermediate calculations to 2 decima
places.)
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