1 CACILISE - Aiyoj rieuelenleu veneau Rales. CulCal issues in 1-3, 3) Marine Components produces parts for airplanes and ships. The parts are produced to specification by their customers, who pay either a fixed price (the price does not depend directly on the cost of the job) or price equal to recorded cost plus a fixed fee (cost plus). For the upcoming year (year 2), Marine expects only two clients (client 1 and client 2). The work done for client 1 will all be done under fixed-price contracts while the work done for client 2 will all be done under cost-plus contracts. The controller at Marine Components chose direct labor cost as the allocation base in year 2, based on what she considered reflected the relation between overhead and direct labor cost. Year 3 is approaching and again the company only expects two clients: client 1 and client 3. Work for client 1 will continue to be billed using fixed-price contracts, and client 3 will be billed based on cost-plus contracts Manufacturing overhead for year 3 is estimated to be $38 million. Other budgeted data for year 3 include: Machine-hours (thousands) Direct labor cost ($ 000) client 1 5,700 $5,000 client 3 13,300 $ 5,000 Required: a. Compute the predetermined rate assuming that Marine Components uses machine-hours to apply overhead. b. Compute the predetermined rate assuming that Marine Components uses direct labor cost to apply overhead. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required A Required B Compute the predetermined rate assuming that Marine Components uses direct labor cost to apply overhead. Application rate % of direct labor cost 2 At the beginning of the month, Arthur's Olde Consulting Corporation had two jobs in process that had the following costs assigned from previous months. Job Number Direct Labor Applied Overhead SY-400 $23,040 SY-403 15, 120 During the month, Jobs SY-400 and SY-403 were completed but not billed to customers. The completion costs for SY-400 required $25,200 in direct labor. For SY-403, $72,000 in labor was used. During the month, the only new job, SY-404, was started but not finished. Total direct labor costs for all jobs amounted to $148,320 for the month. Overhead in this company refers to the cost of work that not directly traced to particular jobs, including copying, printing, and travel costs to meet with clients. Overhead is applied at a rate of 60 percent of direct labor costs for this and previous periods. Actual overhead for the month was $90,000. Required: a. What are the costs of Jobs SY-400 and SY-403 at the beginning of the month and when completed? b. What is the cost of Job SY-404 at the end of the month? c. How much was under-or overapplied service overhead for the month? Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required A Required B Required C What are the costs of Jobs SY-400 and SY-403 at the beginning of the month and when completed? The cost of jobs at the beginning of the month The cost of job when completed SY-400 s 36,864s S 13,824 XS SY-403 24,192 9,072