QUESTION 2 Clapton Guitars makes a variety of musical products that it sells to retailers. The company's job- order costing system uses departmental predetermined overhead rates to apply manufacturing overhead cost to jobs. The predetermined overhead rate in the Molding Department is based on machine-hours, and the rate in the Painting Department is based on direct labor-hours. At the beginning of the year, the company provided the following estimates: Direct labor-hours Machine-hours Fized manufacturing overhead cost Variable manufacturing overhead per machine- Department Molding Painting 32,500 58,100 90,000 31,000 $225,000 $499,660 $3.00 0 0 $4.50 Variable manufacturing overhead per direct labor- Job 205 was started on August 1 and completed on August 10. The company's cost records show the following information concerning the job: Department Molding Painting Direct labor-hours 88 133 Machine-hours 370 66 Direct materials $944 $1,140 Direct labor cost $690 $950 Required: round all answers to 2 decimal places and 1. Compute the predetermined overhead rates used in the Molding Department and the Painting 2. Compute the total overhead cost applied to Job 205. 3. What would be the total manufacturing cost recorded for Job 205? 4. If the job contained 21 units, what would be its unit product cost?
QUESTION 2 Clapton Guitars makes a variety of musical products that it sells to retailers. The company's job- order costing system uses departmental predetermined overhead rates to apply manufacturing overhead cost to jobs. The predetermined overhead rate in the Molding Department is based on machine-hours, and the rate in the Painting Department is based on direct labor-hours. At the beginning of the year, the company provided the following estimates: Direct labor-hours Machine-hours Fized manufacturing overhead cost Variable manufacturing overhead per machine- Department Molding Painting 32,500 58,100 90,000 31,000 $225,000 $499,660 $3.00 0 0 $4.50 Variable manufacturing overhead per direct labor- Job 205 was started on August 1 and completed on August 10. The company's cost records show the following information concerning the job: Department Molding Painting Direct labor-hours 88 133 Machine-hours 370 66 Direct materials $944 $1,140 Direct labor cost $690 $950 Required: round all answers to 2 decimal places and 1. Compute the predetermined overhead rates used in the Molding Department and the Painting 2. Compute the total overhead cost applied to Job 205. 3. What would be the total manufacturing cost recorded for Job 205? 4. If the job contained 21 units, what would be its unit product cost?
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:QUESTION 2
Clapton Guitars makes a variety of musical products that it sells to retailers. The company's job-
order costing system uses departmental predetermined overhead rates to apply manufacturing
overhead cost to jobs. The predetermined overhead rate in the Molding Department is based on
machine-hours, and the rate in the Painting Department is based on direct labor-hours. At the
beginning of the year, the company provided the following estimates:
Direct labor-hours
Machine-hours
Fized manufacturing overhead cost
Variable manufacturing overhead per machine-
Department
Molding
Painting
32,500
58,100
90,000
31,000
$225,000
$499,660
$3.00
0
0
$4.50
Variable manufacturing overhead per direct labor-
Job 205 was started on August 1 and completed on August 10. The company's cost records show
the following information concerning the job:
Department
Molding
Painting
Direct labor-hours
88
133
Machine-hours
370
66
Direct materials
$944
$1,140
Direct labor cost
$690
$950
Required: round all answers to 2 decimal places
and
1. Compute the predetermined overhead rates used in the Molding Department and the Painting
2. Compute the total overhead cost applied to Job 205.
3. What would be the total manufacturing cost recorded for Job 205?
4. If the job contained 21 units, what would be its unit product cost?
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