Purple Company has two departments, Cutting and Finishing. The company uses a job-order costing system and computes a predetermined overhead rate in each department. The Cutting Department bases its rate on machine-hours, and the Finishing Department bases its rate on direct labor-hours. At the beginning of the year, the company made the following estimates: Cutting Department Finishing Department Direct labor-hours 10,000 25,000 4,000 $300,000 Machine-hours 30,000 $250,000 $2.00 Total fixed manufacturing overhead cost Variable manufacturing overhead per machine-hour Variable manufacturing overhead per direct labor-hour $4.00 A) Compute the predetermine overhead rate for each department. B) The job cost sheet for Job 203, which was started and completed during the year, showed the following:

Purple Company has two departments, Cutting and Finishing. The company uses a job-order costing system and computes a predetermined overhead rate in each department. The Cutting Department bases its rate on machine-hours, and the Finishing Department bases its rate on direct labor-hours. At the beginning of the year, the company made the following estimates: Cutting Department Finishing Department Direct labor-hours 10,000 25,000 4,000 $300,000 Machine-hours 30,000 $250,000 $2.00 Total fixed manufacturing overhead cost Variable manufacturing overhead per machine-hour Variable manufacturing overhead per direct labor-hour $4.00 A) Compute the predetermine overhead rate for each department. B) The job cost sheet for Job 203, which was started and completed during the year, showed the following:

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Thatch corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours. The company based its predetermined overhead rate for the current year on total fixed manufactruing overhead cost of $665,000, variable manufacturing overhead of $3.00 per machine-hour, and 70,000 machine-hours. Recently, Job T321 was completed with the following characteristics: Number of units in the job 30 Total machine0hours 90 Direct materials $630 Direct labor cost $2,880 The unit product cost for Job T321 is closest to $154.50. How was this answer achieved? Can I see the breakdown of the formula?
White Company has two departments, Cutting and Finishing. The company uses a job-order costing system and computes a predetermined overhead rate in each department. The Cutting Department bases its rate on machine-hours, and the Finishing Department bases its rate on direct labor-hours. At the beginning of the year, the company made the following estimates: Department Cutting Finishing Direct labor-hours 7,800 76,000 Machine-hours 52,700 3,200 Total fixed manufacturing overhead cost $ 390,000 $ 425,000 Variable manufacturing overhead per machine-hour $ 3.00 0 Variable manufacturing overhead per direct labor-hour 0 $3.75 Required (see below for hints, if needed): 1. Compute the predetermined overhead rate for each department. 2. The job cost sheet for Job 203, which was started and completed during the year, showed the following: Department Cutting Finishing Direct labor-hours 3 16 Machine-hours 89 6 Direct materials $ 730 $ 380 Direct labor…
Landen Corporation uses job-order costing. At the beginning of the year, it made the following estimates: Direct labor-hours required to support estimated production 140,000 Machine-hours required to support estimated production 70,000 Fixed manufacturing overhead cost $ 784,000 Variable manufacturing overhead cost per direct labor-hour $ 2.00 Variable manufacturing overhead cost per machine-hour $ 4.00 During the year, Job 550 was started and completed. The following information pertains to this job: Direct materials $ 175 Direct labor cost $ 225 Direct labor-hours 15 Machine-hours 5 Required: Assume Landen has historically used a plantwide predetermined overhead rate with direct labor-hours as the allocation base. Under this approach: Compute the plantwide predetermined overhead rate. Compute the total manufacturing cost of Job 550. If Landen uses a markup percentage of 200% of its total manufacturing cost, what selling price would it establish for Job…
Hardev
Hahn Company uses a job-order costing system. Its plantwide predetermined overhead rate uses direct labor-hours as the allocation base. The company pays its direct laborers $21.50 per hour. During the year, the company started and completed only two jobs-Job Alpha, which used 64,900 direct labor-hours, and Job Omega. The job cost sheets for these two jobs are shown below: Job Alpha Direct materials Direct labor Manufacturing overhead applied Total job cost Job Omega Direct materials Direct labor Manufacturing overhead applied Total job cost $ 2,806,000 $ 443,900 571,900 385,700 $ 1,401,500 Required: 1. Calculate the plantwide predetermined overhead rate. 2. Complete the job cost sheet for Job Alpha. Required 1 Required 2 Complete this question by entering your answers in the tabs below. Calculate the plantwide predetermined overhead rate. (Round your answer to 2 decimal places.) Plantwide predetermined overhead rate Eper DLH
Mason Company has two manufacturing departments—Machining and Assembly. The company considers all of its manufacturing overhead costs to be fixed costs. It provided the following estimates at the beginning of the year as well as the following information with respect to Jobs A and B: Estimated Data Machining Assembly Total Manufacturing overhead $ 20,184,000 $ 841,000 $ 21,025,000 Direct labor hours 29,000 696,000 725,000 Machine hours 696,000 24,000 720,000 Job A Machining Assembly Total Direct labor hours 5 10 15 Machine hours 11 2 13 Job B Machining Assembly Total Direct labor hours 4 5 9 Machine hours 12 3 15 Required: 1. If Mason Company uses a plantwide predetermined overhead rate with direct labor-hours as the allocation base, how much manufacturing overhead cost would be applied to Job A? Job B? (Round your answers to the nearest whole dollar amount.) 2. Assume that Mason Company uses departmental…
Landen Corporation uses a job-order costing system. At the beginning of the year, the company made the following estimates: Direct labor-hours required to support estimated production Machine-hours required to support estimated production Fixed manufacturing overhead cost Variable manufacturing overhead cost per direct labor-hour Variable manufacturing overhead cost per machine-hour 70,000 35,000 $ 210,000 $ 1.40 $ 2.80 During the year, Job 550 was started and completed. The following information is available with respect to this job: Direct materials Direct labor cost $ 215 $ 231 15 5 Direct labor-hours Machine-hours Required: 1. Assume that Landen has historically used a plantwide predetermined overhead rate with direct labor-hours as the allocation base. Under this approach: a. Compute the plantwide predetermined overhead rate. b. Compute the total manufacturing cost of Job 550. c. If Landen uses a markup percentage of 200% of its total manufacturing cost, what selling price would…
The Oswell Company manufactures products in two departments: Mixing and Packaging. The company allocates manufacturing overhead using a single plantwide rate with direct labor hours as the allocation base. Estimated overhead costs for the year are $579,800, and estimated direct labor hours are 260,000. In October, the company incurred 60,000 direct labor hours. Requirement 1. Compute the predetermined overhead allocation rate. Round to two decimal places. Begin by selecting the formula to calculate the predetermined overhead (OH) allocation rate. Then enter the amounts to compute the allocation rate. Predetermined OH ? ÷ ? = allocation rate ? ÷ ? = ? Requirement 2. Determine the amount of overhead allocated in October. Begin by selecting the formula to allocate overhead costs. Allocated mfg. ? × ? = overhead costs The overhead allocated…
Delph Delph Company uses a job-order costing system with a plantwide predetermined overhead rate based on machine- hours. At the beginning of the year, the company estimated that 56,000 machine-hours would be required for the period's estimated level of production. It also estimated $1,000,000 of fixed manufacturing overhead cost for the coming period and variable manufacturing overhead of $4.00 per machine-hour. Because Delph has two manufacturing departments-Molding and Fabrication-it is considering replacing its plantwide overhead rate with departmental rates that would also be based on machine-hours. The company gathered the following information to enable calculating departmental overhead rates: Machine-hours Molding 21,000 Fabrication 35,000 Total 56,000 Fixed manufacturing overhead cost $ 780,000 $220,000 $1,000,000 Variable manufacturing overhead cost per machine-hour $ 4.00 $1.00 During the year, the company had no beginning or ending inventories and it started, completed, and…
XYZ Company has two production departments, Machining and Customizing. The company uses a job- order costing system and computes a predetermined overhead rate (POHR) in each department. The Machining Department's POHR is based on machine- hours (Mhrs) and the Customizing Department's POHR is based on direct labor-hours (DLH). At the beginning of the current year, the company estimated the following yearly Mhrs and DLH to be used in each department: 20,000 Mhrs and 15,000 DLH in the Marching Department; 10,000 Mhrs and 25,000 DLH in the Customizing Department. The company also estimated the yearly total manufacturing overhead cost in each department: OMR150,000 in the Machining Department and OMR100,000 in the Customizing Department. During the year, Job XY incurred the following numbber of hours in each department: 58 Mhrs and 30 DLH in the Machining Department; and 80 Mhrs and 50 DLH in the- Customizing Department. What is the total amount of manufacturing overhead that should be…
Comans Corporation has two production departments, Milling and Customizing. The company uses a job-order costing system and computes a predetermined overhead rate in each production department. The Milling Department’s predetermined overhead rate is based on machine-hours and the Customizing Department’s predetermined overhead rate is based on direct labor-hours. At the beginning of the current year, the company had made the following estimates: Milling Customizing Machine-hours 16,000 11,000 Direct labor-hours 18,000 6,000 Total fixed manufacturing overhead cost $ 92,800 $ 28,800 Variable manufacturing overhead per machine-hour $ 1.20 Variable manufacturing overhead per direct labor-hour $ 5.00 During the current month the company started and finished Job A319. The following data were recorded for this job: Job A319: Milling Customizing Machine-hours 50 40 Direct labor-hours 60 30 Direct materials $ 430 $ 180 Direct labor cost $ 800 $ 540…
Landen Corporation uses job - order costing. At the beginning of the year, it made the following estimates: Direct labor - hours required to support estimated production 140,000 Machine - hours required to support estimated production 70, 000 Fixed manufacturing overhead cost $ 784,000 Variable manufacturing overhead cost per direct labor-hour $ 2.00 Variable manufacturing overhead cost per machine - hour $ 4.00 During the year, Job 550 was started and completed. The following information pertains to this job: Direct materials $ 175 Direct labor cost $ 225 Direct labor-hours 15 Machine - hours 5 Required: Assume Landen has historically used a plantwide predetermined overhead rate with direct labor-hours as the allocation base. Under this approach: Compute the plantwide predetermined overhead rate. Compute the total manufacturing cost of Job 550. If Landen uses a markup percentage of 200% of its total manufacturing cost, what selling price would it establish for Job 550? Assume Landen's…