Help Save & Exit Check Mid-Life Motorcycles (MLM) is a small shop that builds customized motorcycles, mostly for middle-aged men with significant discretionary income who are hoping to fulfill a high-school dream. Since it works with high-end clients, all of its work is custom and it makes many of the bike parts used, including frames, in-house. Other parts, such as the engine, are purchased from outside suppliers and then modified in-house. Although most of the bikes are built to-order for a specific individual, the shop occasionally builds a bike with no prearranged buyer. These bikes are sometimes intended to be entered in custom-bike contest and then sold afterwards. The shop has been in existence for 10 years, but for the sake of simplicity, assume it has no beginning inventories for 2019. Five motorcycle restoration projects were worked on during 2019. By the end of the year, four of these projects were complete and three of them had been sold. The following selected data are from MLM's 2019 budget. Advertising Direct materials Direct labor Rent on office space Rent on factory space Indirect materials Maintenance costs for factory equipment Utilities costs for office space Utilities costs for factory space Depreciation on factory equipment Machine hours expected to be worked Direct labor hours expected to be worked $ 11,030 200,800 180,900 9,800 29,400 14,800 5,000 1,800 3,800 11,400 3,800 6,200 W r=0&launchUrl=https%253A%252F%252Flms.mheducation.com%252Fmghmiddleware%252Fmhepr... ze Think and Communicate Saved Help Save & Exit Submit ridnine nour's expecteu LO De workeu Direct labor hours expected to be worked Check my work 6,200 The following information relates to production events during 2019. . Raw materials were purchased for $197,900. Materials used in production totaled $191,300; $14,500 of these were considered indirect materials costs. The remaining $176,800 of direct materials costs related to individual motorcycle jobs as follows. Job Number 115 116 117 118 119 Direct Materials Cost $40,600 33, 100 39,200 37,000 26,900 Labor costs incurred for production totaled $168,500. The workers are highly skilled craftsmen who require little supervision. Therefore, all of these costs were considered direct labor costs and related to individual jobs as follows. or Job Number 115 116 117 Direct Cost $37, 400 39,200 45, 100 28,200 18 AAA 118 110 Prev B of 6 Next > hep e 3 Analyze Think and Communicate i Saved Help Save & Exit B 110 119 20,200 18,600 Check my . Paid factory rent of $27,800. Recorded depreciation on factory equipment of $11,900. Made $5,200 of payments to outside vendors for maintenance of factory equipment. Paid factory utilities costs of $3,900. Applied manufacturing overhead using a predetermined rate of $16.95 per machine hour. The 3,360 machine hours that were used relate to each job as follows. oped . cook rences Job Number 115 116 117 118 119 Machine Hours Worked 660 740 820 790 350 Completed all jobs except Job 119 and transferred those projects to finished goods. Sold three jobs for the following amounts: Job Number 115 116 117 Sales Price $ 128, 100 120,400 113, 120 Prey 3 of 6 Next UTLET w nal_browser=0&launchUrl=https%253A%252F%252Flms.mheducation.com%252Fmghmiddleware%252Fmhep... # lyze Think and Communicate 6 Saved Help Save & Exit Submit 116 117 Check 120,400 113, 100 my work Closed the Manufacturing Overhead account to transfer any overapplied or underapplied overhead to the Cost of Goods Sold account. Required a. Assume MLM had used direct labor hours (versus machine hours) as its cost driver. Compute its predetermined overhead rate. (Round your answer to 2 decimal places.) b. Determine the ending balance in Raw Materials Inventory. c. Determine the ending balance in Finished Goods Inventory. d. Determine the ending balance in Work in Process Inventory. e. Determine the costs of goods manufactured. f. Determine the amount of Cost of Goods Sold. g. Determine the amount of gross margin that was earned on Jobs 115, 116, and 117. h. Determine the amount of overapplied or underapplied overhead that existed at the end of the year. (For all requirements, round your intermediate calculations to 2 decimal places.) a Predetermined overhead rate per hour b Ending balance in Raw materials 3 of 6 BM Prey Next > Analyze Think and Communicate g. Determine the amount of gross margin that was earned on Jobs 115. 116 and 177 h. Determine the amount of overapplied or underapplied overhead that existed at the end of the year (For all requirements, round your intermediate calculations to 2 decimal places.) a. Predetermined overhead rate per hour b. Ending balance in Raw materials c. Ending balance in Finished goods inventory d Ending balance in Work in process inventory e Cost of goods manufactured 1 Cost of goods sold g Gross margin for job 115 Gross margin for job 116 Gross margin for job 117 h Over or underapplied overhead Help Save & Exit Check Mid-Life Motorcycles (MLM) is a small shop that builds customized motorcycles, mostly for middle-aged men with significant discretionary income who are hoping to fulfill a high-school dream. Since it works with high-end clients, all of its work is custom and it makes many of the bike parts used, including frames, in-house. Other parts, such as the engine, are purchased from outside suppliers and then modified in-house. Although most of the bikes are built to-order for a specific individual, the shop occasionally builds a bike with no prearranged buyer. These bikes are sometimes intended to be entered in custom-bike contest and then sold afterwards. The shop has been in existence for 10 years, but for the sake of simplicity, assume it has no beginning inventories for 2019. Five motorcycle restoration projects were worked on during 2019. By the end of the year, four of these projects were complete and three of them had been sold. The following selected data are from MLM's 2019 budget. Advertising Direct materials Direct labor Rent on office space Rent on factory space Indirect materials Maintenance costs for factory equipment Utilities costs for office space Utilities costs for factory space Depreciation on factory equipment Machine hours expected to be worked Direct labor hours expected to be worked $ 11,030 200,800 180,900 9,800 29,400 14,800 5,000 1,800 3,800 11,400 3,800 6,200 W r=0&launchUrl=https%253A%252F%252Flms.mheducation.com%252Fmghmiddleware%252Fmhepr... ze Think and Communicate Saved Help Save & Exit Submit ridnine nour's expecteu LO De workeu Direct labor hours expected to be worked Check my work 6,200 The following information relates to production events during 2019. . Raw materials were purchased for $197,900. Materials used in production totaled $191,300; $14,500 of these were considered indirect materials costs. The remaining $176,800 of direct materials costs related to individual motorcycle jobs as follows. Job Number 115 116 117 118 119 Direct Materials Cost $40,600 33, 100 39,200 37,000 26,900 Labor costs incurred for production totaled $168,500. The workers are highly skilled craftsmen who require little supervision. Therefore, all of these costs were considered direct labor costs and related to individual jobs as follows. or Job Number 115 116 117 Direct Cost $37, 400 39,200 45, 100 28,200 18 AAA 118 110 Prev B of 6 Next > hep e 3 Analyze Think and Communicate i Saved Help Save & Exit B 110 119 20,200 18,600 Check my . Paid factory rent of $27,800. Recorded depreciation on factory equipment of $11,900. Made $5,200 of payments to outside vendors for maintenance of factory equipment. Paid factory utilities costs of $3,900. Applied manufacturing overhead using a predetermined rate of $16.95 per machine hour. The 3,360 machine hours that were used relate to each job as follows. oped . cook rences Job Number 115 116 117 118 119 Machine Hours Worked 660 740 820 790 350 Completed all jobs except Job 119 and transferred those projects to finished goods. Sold three jobs for the following amounts: Job Number 115 116 117 Sales Price $ 128, 100 120,400 113, 120 Prey 3 of 6 Next UTLET w nal_browser=0&launchUrl=https%253A%252F%252Flms.mheducation.com%252Fmghmiddleware%252Fmhep... # lyze Think and Communicate 6 Saved Help Save & Exit Submit 116 117 Check 120,400 113, 100 my work Closed the Manufacturing Overhead account to transfer any overapplied or underapplied overhead to the Cost of Goods Sold account. Required a. Assume MLM had used direct labor hours (versus machine hours) as its cost driver. Compute its predetermined overhead rate. (Round your answer to 2 decimal places.) b. Determine the ending balance in Raw Materials Inventory. c. Determine the ending balance in Finished Goods Inventory. d. Determine the ending balance in Work in Process Inventory. e. Determine the costs of goods manufactured. f. Determine the amount of Cost of Goods Sold. g. Determine the amount of gross margin that was earned on Jobs 115, 116, and 117. h. Determine the amount of overapplied or underapplied overhead that existed at the end of the year. (For all requirements, round your intermediate calculations to 2 decimal places.) a Predetermined overhead rate per hour b Ending balance in Raw materials 3 of 6 BM Prey Next > Analyze Think and Communicate g. Determine the amount of gross margin that was earned on Jobs 115. 116 and 177 h. Determine the amount of overapplied or underapplied overhead that existed at the end of the year (For all requirements, round your intermediate calculations to 2 decimal places.) a. Predetermined overhead rate per hour b. Ending balance in Raw materials c. Ending balance in Finished goods inventory d Ending balance in Work in process inventory e Cost of goods manufactured 1 Cost of goods sold g Gross margin for job 115 Gross margin for job 116 Gross margin for job 117 h Over or underapplied overhead