Fowler Company is a company that produces customized bicycles. It follows job-order costing. During the month of October, Fowler had three jobs in process, Jobs 3, 4, and 5. By the end of the month, all three jobs had been completed, with Job 3 being sold for $435. The following costs belong to each job: Line Item Description Job 3 Job 4 Job 5 Direct materials $80 $75 $85 Direct labor 100 110 95 Applied overhead 120 132 114 Total $300 $317 $294 A. Overhead is applied based on direct labor dollars. What is the predetermined overhead rate? fill in the blank 1 of 3 % of direct labor cost B. What is the percentage of markup used by Fowler to price its jobs? fill in the blank 2 of 3 % C. What is the gross margin on Job 3? fill in the blank 3 of 3$
Fowler Company is a company that produces customized bicycles. It follows job-order costing. During the month of October, Fowler had three jobs in process, Jobs 3, 4, and 5. By the end of the month, all three jobs had been completed, with Job 3 being sold for $435. The following costs belong to each job: Line Item Description Job 3 Job 4 Job 5 Direct materials $80 $75 $85 Direct labor 100 110 95 Applied overhead 120 132 114 Total $300 $317 $294 A. Overhead is applied based on direct labor dollars. What is the predetermined overhead rate? fill in the blank 1 of 3 % of direct labor cost B. What is the percentage of markup used by Fowler to price its jobs? fill in the blank 2 of 3 % C. What is the gross margin on Job 3? fill in the blank 3 of 3$
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter2: Job Order Costing
Section: Chapter Questions
Problem 3CMA: Lucy Sportswear manufactures a specialty line of T-shirts using a job order cost system. During...
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Fowler Company is a company that produces customized bicycles. It follows job-order costing. During the month of October, Fowler had three jobs in process, Jobs 3, 4, and 5. By the end of the month, all three jobs had been completed, with Job 3 being sold for $435. The following costs belong to each job:
Line Item Description Job 3 Job 4 Job 5
Direct materials $80 $75 $85
Direct labor 100 110 95
Applied overhead 120 132 114
Total $300 $317 $294
A. Overhead is applied based on direct labor dollars. What is the predetermined overhead rate?
fill in the blank 1 of 3
% of direct labor cost
B. What is the percentage of markup used by Fowler to price its jobs?
fill in the blank 2 of 3
%
C. What is the gross margin on Job 3?
fill in the blank 3 of 3$
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