Job Order Costing:Q1: PearCo estimates that it will require 160,000 direct labor-hours to meet the coming period's estimated production level. Inaddition, the company estimates total fixed manufacturingoverhead at $200,000, and variable manufacturing overheadcosts of $2.75 per direct labor hour.Using plantwide overhead rate (single predetermined overheadrate either direct labor hours or machine hours). Calculateestimated total manufacturing overhead cost and predeterminedoverhead rate. What will be the applied factory overhead cost?Q2: Dickson Company has two production departments, Millingand Assembly. The company uses a job-order costing systemand computes a predetermined overhead rate in each productiondepartment. The predetermined overhead rate in the MillingDepartment is based on machine-hours and in the AssemblyDepartment it is based on direct labor-hours. The company usescost-plus pricing (and a markup percentage of 75% of totalmanufacturing cost) to establish selling prices for all of its jobs.At the beginning of the year, the company made the followingestimates:

Production cost is the total cost incurred for producing a product .It includes direct…

Q1: PearCo estimates that it will require 160,000 direct labor- hours to meet the coming period's estimated production level. In addition, the company estimates total fixed manufacturing overhead at $200,000, and variable manufacturing overhead costs of $2.75 per direct labor hour.

Q1: PearCo estimates that it will require 160,000 direct labor- hours to meet the coming period's estimated production level. In addition, the company estimates total fixed manufacturing overhead at $200,000, and variable manufacturing overhead costs of $2.75 per direct labor hour.

FINANCIAL ACCOUNTING

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ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Question

Job Order Costing:
Q1: PearCo estimates that it will require 160,000 direct labor-
hours to meet the coming period's estimated production level. In
addition, the company estimates total fixed manufacturing
overhead at $200,000, and variable manufacturing overhead
costs of $2.75 per direct labor hour.
Using plantwide overhead rate (single predetermined overhead
rate either direct labor hours or machine hours). Calculate
estimated total manufacturing overhead cost and predetermined
overhead rate. What will be the applied factory overhead cost?
Q2: Dickson Company has two production departments, Milling
and Assembly. The company uses a job-order costing system
and computes a predetermined overhead rate in each production
department. The predetermined overhead rate in the Milling
Department is based on machine-hours and in the Assembly
Department it is based on direct labor-hours. The company uses
cost-plus pricing (and a markup percentage of 75% of total
manufacturing cost) to establish selling prices for all of its jobs.
At the beginning of the year, the company made the following
estimates:

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