The following information relates to a company that has two manufacturing departments. The company used the following da

Business, Finance, Economics, Accounting, Operations Management, Computer Science, Electrical Engineering, Mechanical Engineering, Civil Engineering, Chemical Engineering, Algebra, Precalculus, Statistics and Probabilty, Advanced Math, Physics, Chemistry, Biology, Nursing, Psychology, Certifications, Tests, Prep, and more.
Post Reply
answerhappygod
Site Admin
Posts: 899603
Joined: Mon Aug 02, 2021 8:13 am

The following information relates to a company that has two manufacturing departments. The company used the following da

Post by answerhappygod »

The Following Information Relates To A Company That Has Two Manufacturing Departments The Company Used The Following Da 1
The Following Information Relates To A Company That Has Two Manufacturing Departments The Company Used The Following Da 1 (41.59 KiB) Viewed 11 times
The Following Information Relates To A Company That Has Two Manufacturing Departments The Company Used The Following Da 2
The Following Information Relates To A Company That Has Two Manufacturing Departments The Company Used The Following Da 2 (41.49 KiB) Viewed 11 times
The Following Information Relates To A Company That Has Two Manufacturing Departments The Company Used The Following Da 3
The Following Information Relates To A Company That Has Two Manufacturing Departments The Company Used The Following Da 3 (30.32 KiB) Viewed 11 times
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: Estimated total machine-hours (MRS) Estimated total fixed manufacturing overhead cost Estimated variable manufacturing overhead cost per Mil Dept. X 5,000 $18,000 $1.50 Direct materials Direct labor cost Molding machine-hours Assembly machine-hours Dept. Y 5,000 $29,000 $3.00 Total 10,000 $47,000 During the period, the company started and completed two jobs-Job A and Job B. Data concerning those two jobs follow: Job A Job B $13,900 $8,200 $21,400 $8,200 1,250 3,750 1,250 3,750 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 intermediate calculations.) c. Calculate the total manufacturing cost assigned to Job A. (Do not round intermediate calculations.) d. The company uses a markup of 20% on manufacturing cost to establish selling prices. Calculate the selling price for Job A. (Do not round intermediate 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 intermediate calculations.)

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 intermediate calculations.) c. Calculate the total manufacturing cost assigned to Job A. (Do not round intermediate calculations.) d. The company uses a markup of 20% on manufacturing cost to establish selling prices. Calculate the selling price for Job A. (Do not round intermediate 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 intermediate calculations.) d. The company uses a markup of 20% on manufacturing cost to establish selling prices. Calculate the selling price for Job A. (Do not round intermediate calculations.) 1a Plantwide 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 20. Manufacturing overhead applied to Job A 2d. Selling price of Job A per MH per MH per MH

overhead rate for Dept. Y. (Hound your answer to decimal places.) c. Calculate the total manufacturing overhead applied to Job A. (Do not round intermediate calculations.) d. The company uses a markup of 20% on manufacturing cost to establish selling prices. Calculate the selling price for Job A. (Do not round intermediate calculations.) 1a. Plantwide 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 20. Manufacturing overhead applied to Job A 2d. Selling price of Job A per MH per MH per MH + 3. Do you recommend the company use a plantwide rate or departmental rates to apply overhead? Why?
Join a community of subject matter experts. Register for FREE to view solutions, replies, and use search function. Request answer by replying!
Top
Post Reply

Return to “Archived Questions & Answers”