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Landen Corporation uses a job - order costing system. At the beginning of the year, the company made the following estimates: Direct labor - hours
Landen Corporation uses a joborder costing system. At the beginning of the year, the company made the following estimates: Direct laborhours required to support estimated production Machinehours required to support estimated production Fixed manufacturing overhead cost $ Variable manufacturing overhead cost per direct laborhour $ Variable manufacturing overhead cost per machinehour $ During the year, Job was started and completed. The following information is available with respect to this job: Direct materials $ Direct labor cost $ Direct laborhours Machinehours Required: Assume that Landen has historically used a plantwide predetermined overhead rate with direct laborhours as the allocation base. Under this approach: a Compute the plantwide predetermined overhead rate. b Compute the total manufacturing cost of Job c If Landen uses a markup percentage of of its total manufacturing cost, what selling price would it establish for Job Assume that Landens controller believes that machinehours is a better allocation base than direct laborhours. Under this approach: a Compute the plantwide predetermined overhead rate. b Compute the total manufacturing cost of Job c If Landen uses a markup percentage of of its total manufacturing cost, what selling price would it establish for Job table Direct laborhours:,,a Predetermined overhead rate,$per DLHb Total manufacturing cost of Job c Selling price,, Machinehours:,,a Predetermined overhead rate,,per MHb Total manufacturing cost of Job c Selling price,,
Landen Corporation uses a joborder costing system. At the beginning of the year, the company made the following estimates:
Direct laborhours required to support estimated production
Machinehours required to support estimated production
Fixed manufacturing overhead cost $
Variable manufacturing overhead cost per direct laborhour $
Variable manufacturing overhead cost per machinehour $
During the year, Job was started and completed. The following information is available with respect to this job:
Direct materials $
Direct labor cost $
Direct laborhours
Machinehours
Required:
Assume that Landen has historically used a plantwide predetermined overhead rate with direct laborhours as the allocation base. Under this approach:
a Compute the plantwide predetermined overhead rate.
b Compute the total manufacturing cost of Job
c If Landen uses a markup percentage of of its total manufacturing cost, what selling price would it establish for Job
Assume that Landens controller believes that machinehours is a better allocation base than direct laborhours. Under this approach:
a Compute the plantwide predetermined overhead rate.
b Compute the total manufacturing cost of Job
c If Landen uses a markup percentage of of its total manufacturing cost, what selling price would it establish for Job table Direct laborhours:,,a Predetermined overhead rate,$per DLHb Total manufacturing cost of Job c Selling price,, Machinehours:,,a Predetermined overhead rate,,per MHb Total manufacturing cost of Job c Selling price,,
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