Nielsen Corporation has two manufacturing departments--Machining and Assembly. The company used the following data at the beginning of the year to calculate predetermined overhead rates: Machining Assembly 4,000 $10,800 $ 2.20 Total Estimated total machine-hours (MHs) Estimated total fixed manufacturing overhead cost Estimated variable manufacturing overhead cost per machine-hour 1,000 5,000 $4,700 $ 1.20 $15,500 During the most recent month, the company started and completed two jobs--Job F and Job M. There were no beginning inventories. Data concerning those two jobs follow: Job F Job M $13,000 $20,400 Direct materials $7,400 Direct labor cost $8,800 Machining machine-hours Assembly machine-hours 700 300 1,600 2,400 Assume that the company uses a plantwide predetermined manufacturing overhead rate based on machine-hours and uses a markup of 40% on manufacturing cost to establish selling prices. The calculated selling price for Job M is closest to: (Round your intermediate calculations to 2 decimal places.)
Nielsen Corporation has two manufacturing departments--Machining and Assembly. The company used the following data at the beginning of the year to calculate predetermined overhead rates: Machining Assembly 4,000 $10,800 $ 2.20 Total Estimated total machine-hours (MHs) Estimated total fixed manufacturing overhead cost Estimated variable manufacturing overhead cost per machine-hour 1,000 5,000 $4,700 $ 1.20 $15,500 During the most recent month, the company started and completed two jobs--Job F and Job M. There were no beginning inventories. Data concerning those two jobs follow: Job F Job M $13,000 $20,400 Direct materials $7,400 Direct labor cost $8,800 Machining machine-hours Assembly machine-hours 700 300 1,600 2,400 Assume that the company uses a plantwide predetermined manufacturing overhead rate based on machine-hours and uses a markup of 40% on manufacturing cost to establish selling prices. The calculated selling price for Job M is closest to: (Round your intermediate calculations to 2 decimal places.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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$46,154
$29,970
$11,988
$41,958
Transcribed Image Text:Nielsen Corporation has two manufacturing departments--Machining and Assembly. The company used the following data at the beginning of the year to calculate
predetermined overhead rates:
Machining
Assembly
Total
Estimated total machine-hours (MHS)
Estimated total fixed manufacturing overhead cost
Estimated variable manufacturing overhead cost per machine-hour
1,000
4,000
5,000
$4,700
$ 1.20
$10,800
$ 2.20
$15,500
During the most recent month, the company started and completed two jobs--Job F and Job M. There were no beginning inventories. Data concerning those two jobs
follow:
Job F
Job M
$7,400
$8,800
Direct materials
$13,000
$20,400
Direct labor cost
Machining machine-hours
Assembly machine-hours
700
300
1,600
2,400
Assume that the company uses a plantwide predetermined manufacturing overhead rate based on machine-hours and uses a markup of 40% on manufacturing cost to
establish selling prices. The calculated selling price for Job M is closest to: (Round your intermediate calculations to 2 decimal places.)
Expert Solution
Step 1
Plantwide overhead rate = (1000*1.2+4000*2.2+15500)/5000 = 5.10 per machine hour
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