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 | $ | 24,000 | $ | 53,200 | $ | 77,200 |
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 | $ | 21,600 | $ | 9,300 | ||
Direct labor cost | $ | 22,600 | $ | 9,500 | ||
Molding machine-hours | 2,500 | 500 | ||||
Assembly machine-hours | 2,500 | 4,500 | ||||
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.)
a. Predetermined overhead rate b. Manufacturing overhead applied c. Manufacturing cost per MH
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