Question
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?
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