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Blerce Corporation has two manufacturing departments-Machining and Finishing. The company used the following data at the beglnning of the year to calculate predetermined overhead rates: Machining 4,000 7,600 1.20 Finishing 6,000 $37,800 $ 6.00 Total Estimated total machine-hours (MHS) Estimated total fixed manufacturing overhead cost Estimated variable manufacturing overhead cost per MH 10,000 $ 45,400 %24 24

Blerce Corporation has two manufacturing departments-Machining and Finishing. The company used the following data at the beglnning of the year to calculate predetermined overhead rates: Machining 4,000 7,600 1.20 Finishing 6,000 $37,800 $ 6.00 Total Estimated total machine-hours (MHS) Estimated total fixed manufacturing overhead cost Estimated variable manufacturing overhead cost per MH 10,000 $ 45,400 %24 24

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Blerce Corporatlon has two manufacturing departments-Machining and Finishing. The company used the followIng data at the beglnning of the year to calculate predetermined overhead rates: Machining Finishing 6,000 $ 37,800 $ 6.00 Total Estimated total machine-hours (MHS) Estimated total fixed manufacturing overhead cost Estimated variable manufacturing overhead cost per MH %24 24 4,000 7,600 1. 20 10,000 $ 45,400 During the most recent month, the company started and completed two Jobs-Job B and Job K. There were no beglnning Inventorles. Data concerning those two Jobs follow: Job B Job K $13,700 $7,900 $24,700 $ 6,400 Direct materials Direct labor cost Machining machine-hours Finishing machine-hours 2,500 2,500 1,500 3,500 Requlred: a. Assume that the company uses a plantwide predetermined manufacturing overhead rate based on machine-hours. Calculate that overhead rate. (Round your answer to 2 decimal places.) b. Assume that the company uses a plantwide predetermined manufacturing overhead rate based on machine-hours. Calculate the amount of manufacturing overhead applled to Job B. (Do not round Intermedlate calculations.) C. Assume that the company uses a plantwide predetermined manufacturing overhead rate based on machine-hours. Calculate the amount of manufacturing overhead applled to Job K. (Do not round Intermedlate calculations. Rounc your enswer to the nearest whole dollar amount.) d. Assume that the company uses departmental predetermined overhead rates with machine-hours as the allocation base in both departments. What Is the departmental predetermined overhead rate In the Machining department? (Round your answer to 2 decimal places.) e. Assume that the company uses departmental predetermined overhead rates with machine-hours as the allocation base in both production departments. What Is the departmental predetermined overhead rate In the Finishing department? (Round your answer to 2 declmal places.) f. Assume that the company uses departmental predetermined overhead rates with machine-hours as the allocation base In both production departments. How much manufacturing overhead wll be applled to Job B? (Do not round Intermedlate celculatlons.) g. Assume that the company uses departmental predetermined overhead rates with machine-hours as the allocation base in both production departments. How much manufacturing overhead will be appled to Job K?. (Do not round Intermedlate celculatlons.) Predetermined overhead rate per MH a. b. Manufacturing overhead applied Job B C. Manufacturing overhead applied Job K per MH d. Machining predetermined overhead rate per MH Finishing predetermined overhead rate f. Manufacturing overhead applied job B g. Manufacturing overhead applied job K
Transcribed Image Text:Blerce Corporatlon has two manufacturing departments-Machining and Finishing. The company used the followIng data at the beglnning of the year to calculate predetermined overhead rates: Machining Finishing 6,000 $ 37,800 $ 6.00 Total Estimated total machine-hours (MHS) Estimated total fixed manufacturing overhead cost Estimated variable manufacturing overhead cost per MH %24 24 4,000 7,600 1. 20 10,000 $ 45,400 During the most recent month, the company started and completed two Jobs-Job B and Job K. There were no beglnning Inventorles. Data concerning those two Jobs follow: Job B Job K $13,700 $7,900 $24,700 $ 6,400 Direct materials Direct labor cost Machining machine-hours Finishing machine-hours 2,500 2,500 1,500 3,500 Requlred: a. Assume that the company uses a plantwide predetermined manufacturing overhead rate based on machine-hours. Calculate that overhead rate. (Round your answer to 2 decimal places.) b. Assume that the company uses a plantwide predetermined manufacturing overhead rate based on machine-hours. Calculate the amount of manufacturing overhead applled to Job B. (Do not round Intermedlate calculations.) C. Assume that the company uses a plantwide predetermined manufacturing overhead rate based on machine-hours. Calculate the amount of manufacturing overhead applled to Job K. (Do not round Intermedlate calculations. Rounc your enswer to the nearest whole dollar amount.) d. Assume that the company uses departmental predetermined overhead rates with machine-hours as the allocation base in both departments. What Is the departmental predetermined overhead rate In the Machining department? (Round your answer to 2 decimal places.) e. Assume that the company uses departmental predetermined overhead rates with machine-hours as the allocation base in both production departments. What Is the departmental predetermined overhead rate In the Finishing department? (Round your answer to 2 declmal places.) f. Assume that the company uses departmental predetermined overhead rates with machine-hours as the allocation base In both production departments. How much manufacturing overhead wll be applled to Job B? (Do not round Intermedlate celculatlons.) g. Assume that the company uses departmental predetermined overhead rates with machine-hours as the allocation base in both production departments. How much manufacturing overhead will be appled to Job K?. (Do not round Intermedlate celculatlons.) Predetermined overhead rate per MH a. b. Manufacturing overhead applied Job B C. Manufacturing overhead applied Job K per MH d. Machining predetermined overhead rate per MH Finishing predetermined overhead rate f. Manufacturing overhead applied job B g. Manufacturing overhead applied job K
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