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 Machine-hours required to support estimated production Fixed manufacturing overhead cost Variable manufacturing overhead cost per direct Labor hour Variable manufacturing overhead cost per machine-hour 90,000 45,000 $2$2,000 2.10 $ 4.80 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 5 236 $321 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 London uses a markup percentage of 200% of its total manufacturing cost what selling price would it establish for jab 5502 2. Assume that Landens controller believes that machine hour's is a better location base than direct labor hours. Under this proach 3. Compute the plantwide predetermined overhead toite b. compute the total manufacturing cost of ob 550 If Landon uses a inakub percentage of 200 ofits total manufacturing cost what selling price would it establish for Jou 550 Round your Intermediate calculations to 2 decimal places. Round your "Predetermined Overhead Rete answers to 2 decimal places and all other answers to the nearest whole dollar) et tabobo preto scorch 19 labor-hours Machine-hours 371 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: 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.) per DLH 1. Direct labor-hours: a Predetermined overhead rate b. Total manufacturing cost of Job 550 Selling price 2. Machine-hours a Predetermined overhead rate b. Total manufactunng cost of Job 550 c. Selling price portar

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_2

Step: 3

blur-text-image_3

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

The Routledge Companion To Auditing

Authors: David Hay, W. Robert Knechel, Marleen Willekens

1st Edition

1138363081, 978-1138363083

More Books

Students also viewed these Accounting questions

Question

What information is provided by use cases or a use case diagram?

Answered: 1 week ago

Question

Relational Contexts in Organizations

Answered: 1 week ago