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
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
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter26: Manufacturing Accounting: The Job Order Cost System
Section: Chapter Questions
Problem 5SEA: PREDETERMINED FACTORY OVERHEAD RATE Millerlile Enterprises calculates a predetermined factory...
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Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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