Landen Corporation uses a job - order costing system. At the beginning of the year, the company
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Question:
Landen Corporation uses a joborder costing system. At the beginning of the year, the company made the following estimates:
tableDirect laborhours required to support estimated production,Machinehours required to support estimated production,Fixed manufacturing overhead cost,$
Assume that Landen's 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 Round your intermediate calculations to decimal places. Round your Predetermined Overhead Rate answers to decimal places and all other answers to the nearest whole dollar.
table Direct laborhours:,,a Predetermined overhead rate,,,er DLHb Total manufacturing cost of Job c Selling price,,per MH Machinehours:,,a Predetermined overhead rate,,b Total manufacturing cost of Job c Selling price,,
Related Book For
Managerial Accounting
ISBN: 978-1259307416
16th edition
Authors: Ray Garrison, Eric Noreen, Peter Brewer
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