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) | 3,000 | 7,000 | 10,000 |
Estimated total fixed manufacturing overhead cost | $ 12,000 | $ 39,200 | $ 51,200 |
Estimated variable manufacturing overhead cost per MH | $ 1.00 | $ 2.00 |
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 | $ 22,300 | $ 8,200 |
Direct labor cost | $ 22,600 | $ 9,100 |
Molding machine-hours | 1,250 | 1,750 |
Assembly machine-hours | 2,500 | 4,500 |
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.)
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