Question
10. Lupo Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours. The company based its predetermined overhead rate
10.
Lupo Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours. The company based its predetermined overhead rate for the current year on the following data:
Total machine-hours | 32,500 |
---|---|
Total fixed manufacturing overhead cost | $455,000 |
Variable manufacturing overhead per machine-hour | $ 5.00 |
Recently, Job T687 was completed with the following characteristics:
Number of units in the job | 10 |
---|---|
Total machine-hours | 40 |
Direct materials | $ 710 |
Direct labor cost | $1,420 |
If the company marks up its unit product costs by 40% then the selling price for a unit in Job T687 is closest to: (Round your intermediate calculations to 2 decimal places.)
12.
Garza Corporation has two production departments, Casting and Customizing. The company uses a job-order costing system and computes a predetermined overhead rate in each production department. The Casting Departments predetermined overhead rate is based on machine-hours and the Customizing Departments predetermined overhead rate is based on direct labor-hours. At the beginning of the current year, the company had made the following estimates:
Casting | Customizing | |
---|---|---|
Machine-hours | 25,000 | 24,000 |
Direct labor-hours | 7,000 | 7,000 |
Total fixed manufacturing overhead cost | $145,000 | $35,000 |
Variable manufacturing overhead per machine-hour | $ 1.10 | |
Variable manufacturing overhead per direct labor-hour | $ 3.20 |
The estimated total manufacturing overhead for the Customizing Department is closest to:
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started