Heroux Corporation has two manufacturing departments--Forming and Customizing. The company used the following data at the beginning of the year to calculate predetermined overhead rates: Forming Customizing Total Estimated total machine-hours (MHs) 3,000 7,000 10,000 Estimated total fixed manufacturing overhead cost $ 16,500 $ 20,300 $ 36,800 Estimated variable manufacturing overhead cost per MH $ 1.70 $ 2.50 During the most recent month, the company started and completed two jobs--Job A and Job H. There were no beginning inventories. Data concerning those two jobs follow: Job A Job H Direct materials $ 12,800 $ 6,700 Direct labor cost $ 24,300 $ 7,800 Forming machine-hours 2,000 1,000 Customizing machine-hours 2,800 4,200Assume that the company uses departmental predetermined overhead rates with machine-hours as the allocation base in both production departments. The manufacturing overhead applied to Job H is closest to: $30,888 $29,880 $7,200 $22,680
Heroux Corporation has two manufacturing departments--Forming and Customizing. The company used the following data at the beginning of the year to calculate predetermined overhead rates: Forming Customizing Total Estimated total machine-hours (MHs) 3,000 7,000 10,000 Estimated total fixed manufacturing overhead cost $ 16,500 $ 20,300 $ 36,800 Estimated variable manufacturing overhead cost per MH $ 1.70 $ 2.50 During the most recent month, the company started and completed two jobs--Job A and Job H. There were no beginning inventories. Data concerning those two jobs follow: Job A Job H Direct materials $ 12,800 $ 6,700 Direct labor cost $ 24,300 $ 7,800 Forming machine-hours 2,000 1,000 Customizing machine-hours 2,800 4,200Assume that the company uses departmental predetermined overhead rates with machine-hours as the allocation base in both production departments. The manufacturing overhead applied to Job H is closest to: $30,888 $29,880 $7,200 $22,680
Chapter1: Financial Statements And Business Decisions
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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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Heroux Corporation has two manufacturing departments--Forming and Customizing. The company used the following data at the beginning of the year to calculate predetermined overhead rates:
During the most recent month, the company started and completed two jobs--Job A and Job H. There were no beginning inventories. Data concerning those two jobs follow:
Assume that the company uses departmental predetermined overhead rates with machine-hours as the allocation base in both production departments. The manufacturing overhead applied to Job H is closest to:
| Forming | Customizing | Total | ||||
| Estimated total machine-hours (MHs) | 3,000 | 7,000 | 10,000 | |||
| Estimated total fixed |
$ | 16,500 | $ | 20,300 | $ | 36,800 |
| Estimated variable manufacturing overhead cost per MH | $ | 1.70 | $ | 2.50 |
During the most recent month, the company started and completed two jobs--Job A and Job H. There were no beginning inventories. Data concerning those two jobs follow:
| Job A | Job H | |||
| Direct materials | $ | 12,800 | $ | 6,700 |
| Direct labor cost | $ | 24,300 | $ | 7,800 |
| Forming machine-hours | 2,000 | 1,000 | ||
| Customizing machine-hours | 2,800 | 4,200 |
|
$30,888
|
||
|
$29,880
|
||
|
$7,200
|
||
|
$22,680
|
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