Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Landen Corporation uses a job-order costing system at the beginning of the year, the company made the following estimates: Direct labor-hours required to support estimated

image text in transcribed
image text in transcribed
Landen Corporation uses a job-order costing system at the beginning of the year, the company made the following estimates: Direct labor-hours required to support estimated production 105,000 Machine-hours required to support estimated production 52,500 Fixed manufacturing overhead cost $ 294,000 Variable manufacturing overhead cost per direct labor-hour $3.00 Variable manufacturing overhead cost per nachine-hour $6.00 During the year, Job 550 was started and completed. The following information is available with respect to this job Direct materials Direct labor cost Direct labor-hours Machine-hours $ 229 $ 293 15 5 Required: 1 Assume that Landen has historically used a plantwide predetermined overhead rate with direct labor-hours as the allocation base Under this approach: a. Compute the plantwide predetermined overhead rate. b. Compute the total manufacturing cost of Job 550 c. If Landen uses a markup percentage of 200% of its total manufacturing cost, what selling price would it establish for Job 550? 2. Assume that Landen's controller believes that machine-hours is a better allocation base than direct labor-hours. Under this approach the plantwide predetermined overhead rate 2 Assume that Landen's controller believes that machine hours is a better allocation base than direct labor-hours. Under this approach a. Compute the plantwide predetermined overhead rate. b. Compute the total manufacturing cost of Job 550 c. If Landen uses a markup percentage of 200% of its total manufacturing cost, what selling price would it establish for Job 550? (Round your intermediate calculations to 2 decimal places, Round your predetermined Overhead Rate answers to 2 decimal places and all other answers to the nearest whole dollar.) por DLH 1. Direct labor-hours: 1a. Predetermined overhead rato 16. Total manufacturing cost of Job 550 Tc. Selling price 2. Machine-hours 2a. Predetermined overhead rato 2b. Total manufacturing cost of Job 550 2c. Selling price per MH

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

ISE Managerial Accounting

Authors: Stacey M. Whitecotton, Robert Libby, Fred Phillips

5th Edition

1265117896, 9781265117894

More Books

Students also viewed these Accounting questions

Question

Describe the importance of employer branding.

Answered: 1 week ago

Question

Explain corporate sustainability.

Answered: 1 week ago