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Bierce Corporation has two manufacturing departmentsMachining and Finishing. The company used the following data at the beginning ofthe year to calculate predetermined overhead rates: Machining
Bierce Corporation has two manufacturing departmentsMachining and Finishing. The company used the following data at the beginning ofthe year to calculate predetermined overhead rates: Machining Finishing Estimated total machinehours (MHs) 9,000 1,000 Estimated total fixed manufacturing overhead cost $ 26,100 $ 7,600 Estimated variable manufacturing overhead cost per MH $ 2.50 $ 3.00 During the most recent month, the company started and completed twojobsJob B and Job K. There were no beginning inventories. Data concerning those twojobs follow: Job B Job K Direct materials $ 21,800 $ 9,000 Direct labor cost $ 22,100 $ 8,500 Machining machinehours 6,500 2,500 Finishing machinehours 500 500 Required: a. Assume that the company uses a plantwide predetermined manufacturing overhead rate based on machinehours. Calculate that overhead rate. (Round your answer to 2 decimal places.) b. Assume that the company uses a plantwide predetermined manufacturing overhead rate based on machine-hours. Calculate the amount of manufacturing overhead applied to Job B. (Do not round intermediate calculations.) c. Assume that the company uses a plantwide predetermined manufacturing overhead rate based on machinehours. Calculate the amount of manufacturing overhead applied to Job K. (Do not round intermediate calculations. Round your answer to the nearest whole dollar amount.) d. Assume that the company uses departmentalpredetermined overhead rates with machinehours as the allocation base in both depa rtments. What is the departmental predetermined overhead rate in the Machining department? (Round your answer to 2 decimal places.) e. Assume that the company uses departmental predetermined overhead rates with machinehours as the allocation base in both production departments. What is the departmentalpredetermined overhead rate in the Finishing department? (Round your answer to 2 decimal places.) f Assume that the company uses departmental predetermined overhead rates with machinehours as the allocation base in both production departments. How much manufacturing overhead will be applied to Job B? (Do not round intermediate calculations.) 9. Assume that the company uses departmental predetermined overhead rates with machinehours as the allocation base in both production departments. How much manufacturing overhead will be applied to Job K? (Do not round intermediate calculations.) Total 10,000 $ 33,700
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