5 Problem 2-16 Plantwide Predetermined Overhead Rates; Pricing (LO2-1, LO2-2, LO2-3) 143 points Landen Corporation uses a job-order costing system. At the beginning of the year, the company made the following estimates: eBook Pent Direct labor-hours required to support estimated production 160,000 Machine-hours required to support estimated production 80,000 Fixed manufacturing overhead cost $480,000 Variable manufacturing overhead cost per direct labor-hour $ 5.00 Variable manufacturing overhead cost per machine-hour $ 10.00 References During the year, Job 550 was started and completed. The following information is available with respect to this job: Direct materials Direct labor cost Direct labor-hours Machine-hours $ 240 $ 233 15 5 5 143 points Required: 1. Assume that Landen has historically used a plantwide predetermined overhead rate with direct labor hours as the allocation base. Under this approach a. Compute the plantwide predetermined overhead rate. b. Compute the total manufacturing cost of Job 550. c. If Landen uses a markup percentage of 200% of its total manufacturing cost, what selling price would it establish for Job 550? 2. Assume that Landen's controller believes that machine-hours is a better allocation base than direct labor-hours. Under this approach: a. Compute the plantwide predetermined overhead rate. b. Compute the total manufacturing cost of Job 550 c. If Landen uses a markup percentage of 200% of its total manufacturing cost, what selling price would it establish for Job 550? (Round your intermediate calculations to 2 decimal places. Round your "Predetermined Overhead Rate" answers to 2 decimal places and all other answers to the nearest whole dollar.) eBook References por DLH 1. Direct labor-hours a Predetermined overhead rate b. Total manufacturing cost of Job 550 Selling price 2 Machine-hours a Predetermined overhead rale b. Total manufacturing cost of Job 550 c. Selling price per MH 6 Exercise 3-2 Prepare T-Accounts (L03-2, LO3-4) 1428 Jurvin Enterprises is a manufacturing company that had no beginning inventories. A subset of the transactions that it recorded during a recent month is shown below. ponts etico Hint Pind a. $76,300 in raw materials were purchased for cash. b. $73,000 in raw materials were used in production of this amount. $65,100 was for direct materials and the remainder was for indirect materials c. Total tabor wages of $151300 were incurred and paid of this amount. $133,100 was for direct labor and the remainder was for indirect labor d. Additional manufacturing overhead costs of $126,300 were incurred and pald. e. Manufacturing overhead of 5123,400 was applied to production using the company's predetermined overhead rate. f. All of the jobs in process at the end of the month were completed 9. All of the completed jobs were shipped to customers h. Any underapplied or overapplied overhead for the period was closed to Cost of Goods Sold. Reference Required: 1. Post the above transactions to T-accounts 2. Determine the adjusted cost of goods sold for the period, 6 Post the above transactions to T-accounts. Cash Raw Materials Beg Bal 1428 points Beg Bal BOOK Hint End. Bal End. Bal Print References Work in Process Finished Goods Beg Bal Beg Bal End Bal End Bal Manufacturing Overhead Cost of Goods Sold Bog Bal Beg Bal End Bal End Bal Print Complete this question by entering your answers in the tabs below. Seferences Required 1 Required 2 Determine the adjusted cost of goods sold for the period. Adjusted cost of goods sold 7. Exercise 3-4 Underapplied and Overapplied Overhead [LO3-4) 14 28 etlook Osborn Manufacturing uses a predetermined overhead rate of $20.00 per direct labor hour. This predetermined rate was based on a cost formula that estimates $276,000 of total manufacturing overhead for an estimated activity level of 13,800 direct labor hours. The company actually incurred $275,000 of manufacturing overhead and 13,300 direct labor hours during the period. Required: 1. Determine the amount of underapplied or overapplied manufacturing overhead for the period, 2. Assume that the company's underapplied or overapplied overhead is closed to cost of Goods Sold. Would the journal entry to dispose of the underapplied or over applied overhead increase or decrease the company's gross margin? By how much? Pr References 1 Manufacturing overhead 2. The gross margin would by by