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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.)

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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Transcribed Image Text:Multiple Choice $46,154 $29,970 $11,988 $41,958
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.)
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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