Question
Harnett Corporation has two manufacturing departments--Molding and Assembly. The company used the following data at the beginning of the period to calculate predetermined overhead rates:
Harnett Corporation has two manufacturing departments--Molding and Assembly. The company used the following data at the beginning of the period to calculate predetermined overhead rates:
Molding | Assembly | Total | ||||
Estimated total machine-hours (MHs) | 9,000 | 1,000 | 10,000 | |||
Estimated total fixed manufacturing overhead cost | $ | 45,900 | $ | 7,600 | $ | 53,500 |
Estimated variable manufacturing overhead cost per MH | $ | 1.50 | $ | 3.00 | ||
During the period, the company started and completed two jobs--Job E and Job M. Data concerning those two jobs follow:
Job E | Job M | |||||
Direct materials | $ | 21,800 | $ | 9,000 | ||
Direct labor cost | $ | 22,100 | $ | 8,500 | ||
Molding machine-hours | 2,500 | 6,500 | ||||
Assembly machine-hours | 500 | 500 | ||||
Required:
a. Assume that the company uses a plantwide predetermined manufacturing overhead rate based on machine-hours. 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 E. (Do not round intermediate calculations.)
c. Assume that the company uses a plantwide predetermined manufacturing overhead rate based on machine-hours. Calculate the total manufacturing cost assigned to Job E. (Do not round intermediate calculations.)
d. Assume that the company uses a plantwide predetermined manufacturing overhead rate based on machine-hours and uses a markup of 20% on manufacturing cost to establish selling prices. Calculate the selling price for Job E. (Do not round intermediate calculations.)
e. Assume that the company uses departmental predetermined overhead rates with machine-hours as the allocation base in both departments. What is the departmental predetermined overhead rate in the Molding department? (Round your answer to 2 decimal places.)
f. Assume that the company uses departmental predetermined overhead rates with machine-hours as the allocation base in both production departments. What is the departmental predetermined overhead rate in the Assembly department? (Round your answer to 2 decimal places.)
g. Assume that the company uses departmental predetermined overhead rates with machine-hours as the allocation base in both production departments. How much manufacturing overhead will be applied to Job E? (Do not round intermediate calculations.)
h. Assume that the company uses departmental predetermined overhead rates with machine-hours as the allocation base in both production departments. Further assume that the company uses a markup of 20% on manufacturing cost to establish selling prices. Calculate the selling price for Job E. (Do not round intermediate calculations.)
a.Predetermined overhead rate __per MH
b.Manufacturing overhead applied
c.Manufacturing cost
d.Selling price
e.Molding predetermined overhead rate __per MH
f.Assembly predetermined overhead rate __per MH
g.Manufacturing overhead applied job E
h.Selling price for job E
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