Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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:

image text in transcribed
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) 3, 086 10, Gee Estimated total fixed manufacturing overhead cost $ 39,908 $ 18, 606 $ 58, 500 Estimated variable manufacturing overhead cost per MH $ 2.08 1 4.90 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, 608 $ 8, 500 Direct labor cost $ 21, 708 $ 8, 608 Molding machine-hours 2, 508 4. 508 Assembly machine-hours 2, 508 Required: a. Assume that the company uses a plantwide predetermined manufacturing overhead rate based on machine-hours. Calculate that overhead rate. Note: 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. Note: 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. Note: 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. Note: 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? Note: 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? Note: 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? Note: 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. Note: 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 . 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

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Educational Foundations

Authors: Leslie Kaplan, James D Stice, William Owings

2nd Edition

1285968298, 9781285968292

More Books

Students also viewed these Accounting questions

Question

understand the general outline and structure of the current book.

Answered: 1 week ago