The following Information relates to a company that has two manufacturing departments. The company used the following data at the beginning of the perlod to calculate predetermined overhead rates: Dept. X 4,e00 $22,eee $ 3.e0 Dept. Y Total 6,000 Estimated total fixed manufacturing overhead cost Estimated variable manufacturing overhead cost per MH 10,eee $20, 400 $42,400 $ 6.00 During the perlod, the company started and completed two Jobs-Job A and Job B. Data concerning those two Jobs follow: Job A Job B Direct materials Direct labor cost Molding machine-hours Assembly machine-hours $22,500 S8,40e $22,700 $8,00e 2,500 1,500 1,250 4,750 Required: 1. Assume the company uses a plantwide predetermined manufacturing overhead rate based on machine hours. a. Calculate the overhead rate. (Round your answer to 2 decimal places.) b. Calculate the amount of manufacturing overhead applied to Job A. (Do not round Intermedlate calculations.) c. Calculate the total manufacturing cost assigned to Job A. (Do not round Intermedlate calculatlons.) d. The company uses a markup of 80% on manufacturing cost to establish selling prices. Calculate the selling price for Job A. (Do not round Intermedlate calculations.) 2. Assume that the company uses departmental predetermined overhead rates with machine-hours as the allocation base in both departments. a. Calculate the predetermined overhead rate for the Dept. X. (Round your answer to 2 decimal places.) b. Calculate the departmental predetermined overhead rate for Dept. Y. (Round your answer to 2 decimal places.) c. Calculate the total manufacturing overhead applied to Job A. (Do not round Intermedlate calculations.) d. The company uses a markup of 80% on manufacturing cost to establish selling prices. Calculate the selling price for Job A. (Do not round Intermedlate calculations.) 1a. Plantvide predetermined overhead rate 1b. Manufacturing overhead applied to Job A 1c. Total manufacturing cost of Job A 1d. Selling price of Job A 2a. Dept. X predetermined overhead rate |2b. Dept. Y predetermined overhead rate 2c. Manufacturing overhead applied to Job A 2d. Selling price of Job A per MH per MH per MH

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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The following Information relates to a company that has two manufacturing departments. The company used the following data at the
beginning of the period to calculate predetermined overhead rates:
Dept. X
4,000
$22,000
$ 3.00
Dept. Y
6,000
$20,400
$ 6.00
Total
Estimated total machine-hours (MHS)
Estimated total fixed manufacturing overhead cost
Estimated variable manufacturing overhead cost per MH
10,eee
$42,400
During the perlod, the company started and completed two Jobs--Job A and Job B. Data concerning those two Jobs follow:
Job A
Job B
Direct materials
$22,500 $8,400
$22,700 $8,000
2,500
1,250
Direct labor cost
Molding machine-hours
Assembly machine-hours
1,500
4,750
Requlred:
1. Assume the company uses a plantwide predetermined manufacturing overhead rate based on machine hours.
a. Calculate the overhead rate. (Round your answer to 2 decimal places.)
b. Calculate the amount of manufacturing overhead applied to Job A. (Do not round Intermedlate calculatlons.)
c. Calculate the total manufacturing cost assigned to Job A. (Do not round Intermedlate calculatlons.)
d. The company uses a markup of 80% on manufacturing cost to establish selling prices. Calculate the selling price for Job A. (Do
not round Intermedlate calculations.)
2. Assume that the company uses departmental predetermined overhead rates with machine-hours as the allocation base in both
departments.
a. Calculate the predetermined overhead rate for the Dept. X. (Round your answer to 2 decimal places.)
b. Calculate the departmental predetermined overhead rate for Dept. Y. (Round your answer to 2 decimal places.)
c. Calculate the total manufacturing overhead applied to Job A. (Do not round Intermedlate calculatlons.)
d. The company uses a markup of 80% on manufacturing cost to establish selling prices. Calculate the selling price for Job A. (Do
not round Intermedlate calculations.)
1a. Plantwide predetemined overhead rate
1b. Manufacturing overhead applied to Job A
1c. Total manufacturing cost of Job A
1d. Selling price of Job A
2a. Dept. X predetermined overhead rate
2b. Dept. Y predetermined overhead rate
2c. Manufacturing overhead applied to Job A
2d. Selling price of Job A
per MH
per MH
per MH
Transcribed Image Text:The following Information relates to a company that has two manufacturing departments. The company used the following data at the beginning of the period to calculate predetermined overhead rates: Dept. X 4,000 $22,000 $ 3.00 Dept. Y 6,000 $20,400 $ 6.00 Total Estimated total machine-hours (MHS) Estimated total fixed manufacturing overhead cost Estimated variable manufacturing overhead cost per MH 10,eee $42,400 During the perlod, the company started and completed two Jobs--Job A and Job B. Data concerning those two Jobs follow: Job A Job B Direct materials $22,500 $8,400 $22,700 $8,000 2,500 1,250 Direct labor cost Molding machine-hours Assembly machine-hours 1,500 4,750 Requlred: 1. Assume the company uses a plantwide predetermined manufacturing overhead rate based on machine hours. a. Calculate the overhead rate. (Round your answer to 2 decimal places.) b. Calculate the amount of manufacturing overhead applied to Job A. (Do not round Intermedlate calculatlons.) c. Calculate the total manufacturing cost assigned to Job A. (Do not round Intermedlate calculatlons.) d. The company uses a markup of 80% on manufacturing cost to establish selling prices. Calculate the selling price for Job A. (Do not round Intermedlate calculations.) 2. Assume that the company uses departmental predetermined overhead rates with machine-hours as the allocation base in both departments. a. Calculate the predetermined overhead rate for the Dept. X. (Round your answer to 2 decimal places.) b. Calculate the departmental predetermined overhead rate for Dept. Y. (Round your answer to 2 decimal places.) c. Calculate the total manufacturing overhead applied to Job A. (Do not round Intermedlate calculatlons.) d. The company uses a markup of 80% on manufacturing cost to establish selling prices. Calculate the selling price for Job A. (Do not round Intermedlate calculations.) 1a. Plantwide predetemined overhead rate 1b. Manufacturing overhead applied to Job A 1c. Total manufacturing cost of Job A 1d. Selling price of Job A 2a. Dept. X predetermined overhead rate 2b. Dept. Y predetermined overhead rate 2c. Manufacturing overhead applied to Job A 2d. Selling price of Job A per MH per MH per MH
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