Hultquist Corporation has two manufacturing departments--Forming and Customizing. The company used the following dataat the beginning of the period to calculate predetermined overhead rates:Estimated total machine-hours (MHS)Estimated total fixed manufacturing overhead costEstimated variable manufacturing overhead cost per MHForming Customizing Total6,000 4,000 10,000$20,400$ 2.50$9,600 $30,000$ 5.00During the period, the company started and completed two jobs-Job C and Job L. Data concerning those two jobs follow:Job C Job L$15,500 $9,100$22,300 $9,3001,250 4,7501,250 2,750Direct materialsDirect labor costForming machine-hoursCustomizing machine-hours Required: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.)

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Description: Hultquist Corporation has two manufacturing departments--Forming and Customizing. The company used the following dataat the beginning of the period to calculate predetermined overhead rates:Estimated total machine-hours (MHS)Estimated total fixed ma

Overhead recovery rate can be computed by dividing the Total Estimated Overhead by the Estimated…

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Hultquist Corporation has two manufacturing departments--Forming at the beginning of the period to calculate predetermined overhead rates: Estimated total machine-hours (MHS) Estimated total fixed manufacturing overhead cost Estimated variable manufacturing overhead cost per MH and Customizing. The company used the following dat Forming Customizing Total 6,000 4,000 10,000 $20,400 $9,600 $30,000 $5.00 $ 2.50

Hultquist Corporation has two manufacturing departments--Forming at the beginning of the period to calculate predetermined overhead rates: Estimated total machine-hours (MHS) Estimated total fixed manufacturing overhead cost Estimated variable manufacturing overhead cost per MH and Customizing. The company used the following dat Forming Customizing Total 6,000 4,000 10,000 $20,400 $9,600 $30,000 $5.00 $ 2.50

FINANCIAL ACCOUNTING

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ISBN:9781259964947

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Chapter1: Financial Statements And Business Decisions

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Concept explainers

Variance Analysis

In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.

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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Hultquist Corporation has two manufacturing departments--Forming and Customizing. The company used the following data
at the beginning of the period to calculate predetermined overhead rates:
Estimated total machine-hours (MHS)
Estimated total fixed manufacturing overhead cost
Estimated variable manufacturing overhead cost per MH
Forming Customizing Total
6,000 4,000 10,000
$20,400
$ 2.50
$9,600 $30,000
$ 5.00
During the period, the company started and completed two jobs-Job C and Job L. Data concerning those two jobs follow:
Job C Job L
$15,500 $9,100
$22,300 $9,300
1,250 4,750
1,250 2,750
Direct materials
Direct labor cost
Forming machine-hours
Customizing machine-hours

Required:
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.)

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