Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Hultquist Corporation has two manufacturing departments - - Forming and Customizing. The company used the following data at the beginning of the period to calculate
Hultquist Corporation has two manufacturing departmentsForming and Customizing. The company used the following data at the
beginning of the period to calculate predetermined overhead rates:
Estimated total machinehours MHs
Estimated total fixed manufacturing overhead cost
Estimated variable manufacturing overhead cost per MH
Total
During the period, the company started and completed two jobsJob C and Job L Data concerning those two jobs follow:
Required:
a Assume that the company uses a plantwide predetermined manufacturing overhead rate based on machinehours. Calculate that
overhead rate. Round your answer to decimal places.
b Assume that the company uses a plantwide predetermined manufacturing overhead rate based on machinehours. Calculate the
amount of manufacturing overhead applied to Job LDo not round intermediate calculations.
c Assume that the company uses a plantwide predetermined manufacturing overhead rate based on machinehours. Calculate the
total manufacturing cost assigned to Job LDo not round intermediate calculations.
d Assume that the company uses a plantwide predetermined manufacturing overhead rate based on machinehours and uses a
markup of on manufacturing cost to establish selling prices. Calculate the selling price for Job LDo not round intermediate
calculations.
e Assume that the company uses departmental predetermined overhead rates with machinehours as the allocation base in both
departments. What is the departmental predetermined overhead rate in the Forming department? Round your answer to decimal
places.
f Assume that the company uses departmental predetermined overhead rates with machinehours as the allocation base in both
production departments. What is the departmental predetermined overhead rate in the Customizing department? Round your answer
to decimal places.
g Assume that the company uses departmental predetermined overhead rates with machinehours as the allocation base in both
production departments. How much manufacturing overhead will be applied to Job Do not round intermediate calculations.
h Assume that the company uses departmental predetermined overhead rates with machinehours as the allocation base in both
production departments. Further assume that the company uses a markup of on manufacturing cost to establish selling prices.
Calculate the selling price for Job LDo not round intermediate calculations.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started