Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

John Deere Manufacturing Company has two manufacturing departments--Cutting and Soldering for its series 200 lawn tractor body. The company used the following data at the

John Deere Manufacturing Company has two manufacturing departments--Cutting and Soldering for its series 200 lawn tractor body. The company used the following data at the beginning of the year to calculate predetermined overhead rates:

Cutting Soldering
Estimated total machine-hours (MHs) 1,250 11,400
Estimated total fixed manufacturing overhead cost $15,880 $37,300
Estimated variable manufacturing overhead cost per MH $3.4 $2.7

During the most recent month, John Deere started and completed two jobs--Job 1A and Job 1B. There were no beginning inventories. Data concerning those two jobs follow:

Job 1A Job 1B
Direct materials $12,300 $8,492
Direct labor cost $18,200 $5,870
Cutting machine-hours 700 300
Soldering machine-hours 3,600 5,410

Assume that John Deere uses a plantwide predetermined manufacturing overhead rate based on machine-hours and uses a markup of 70% on manufacturing cost to establish selling prices. Answer the following questions. (round predetermined overhead rate to two decimal places)

1. What is the plantwide predetermined MOH rate?

2. What is the total manufacturing cost for Job 1A?

3. What is the selling price for Job 1A?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

For Heintz/parrys College Accounting, Chapters 1-15, 22nd Edition, [instant Access]

Authors: James A. Heintz, Robert W. Parry

22nd Edition

1305669886, 9781305669888

More Books

Students also viewed these Accounting questions

Question

What shorter and longer-term career goals spark your interest?

Answered: 1 week ago