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Hey Chegg, may I humbly ask if someone can help me with this particular accounting question? I'm not too sure why I got this wrong
Hey Chegg, may I humbly ask if someone can help me with this particular accounting question? I'm not too sure why I got this wrong
Landen Corporation uses a job-order costing system. At the beginning of the year, the company made the following estimates: Direct labor-hours required to support estimated production Machine-hours required to support estimated production Fixed manufacturing overhead cost Variable manufacturing overhead cost per direct labor-hour Variable manufacturing overhead cost per machine-hour 140,000 70,000 $784,000 $ 2.00 $ 4.00 During the year, Job 550 was started and completed. The following information is available with respect to this job: $ 175 $ 225 Direct materials Direct labor cost Direct labor-hours Machine-hours Required: 1. Assume that Landen has historically used a plantwide predetermined overhead rate with direct labor-hours as the allocation base. Under this approach: a. Compute the plantwide predetermined overhead rate. b. Compute the total manufacturing cost of Job 550. c. If Landen uses a markup percentage of 200% of its total manufacturing cost, what selling price would it establish for Job 550? 2. Assume that Landen's controller believes that machine-hours is a better allocation base than direct labor-hours. Under this approach: a. Compute the plantwide predetermined overhead rate. b. Compute the total manufacturing cost of Job 550. c. If Landen uses a markup percentage of 200% of its total manufacturing cost, what selling price would it establish for Job 550? (Round your intermediate calculations to 2 decimal places. Round your "Predetermined Overhead Rate" answers to 2 decimal places and all other answers to the nearest whole dollar.) 1. $ 7.60 per DLH $ 514 $ 1,028 Direct labor-hours: Predetermined overhead rate Total manufacturing cost of Job 550 Selling price Machine-hours: Predetermined overhead rate Total manufacturing cost of Job 550 Selling price 2. per b. $ 18.80 $ 494 $ 1,482 %Step by Step Solution
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