Landen Corporation uses job-order costing. At the beginning of the year, it made the following estimates:...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Landen Corporation uses job-order costing. At the beginning of the year, it 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 120,000 60,000 $ 336,000 $ 3.60 $ 7.20 During the year, Job 550 was started and completed. The following information pertains to this job: Direct materials Direct labor cost Direct labor-hours Machine-hours Required: $ 206 $ 238 15 5 1. Assume 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 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? Note: 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. Landen Corporation uses job-order costing. At the beginning of the year, it 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 120,000 60,000 $ 336,000 $ 3.60 $ 7.20 During the year, Job 550 was started and completed. The following information pertains to this job: Direct materials Direct labor cost Direct labor-hours Machine-hours Required: $ 206 $ 238 15 5 1. Assume 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 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? Note: 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.
Expert Answer:
Answer rating: 100% (QA)
1 Using Direct LaborHours as the Allocation Base a Compute the plantwide predetermined overhead rate Predetermined Overhead Rate Total Estimated Overh... View the full answer
Related Book For
Managerial Accounting
ISBN: 978-1259307416
16th edition
Authors: Ray Garrison, Eric Noreen, Peter Brewer
Posted Date:
Students also viewed these accounting questions
-
Childhood obesity: A national health survey weighed a sample of 538 boys aged 6-11 and found that 89 of them were overweight. They weighed a sample of 522 girls aged 6-11 and found that 61 of them...
-
Come - Clean Corporation produces a variety of cleaning compounds and solutions for both industrial and household use. While most of its products are processed independently, a few are related, such...
-
Beta Electronics reports the following data for the year ended December 31, 2019: Cash receipt from sale of equipment Depreciation Expense Cash payment of Dividends Cash receipt from issuance of...
-
The electron in a hydrogen atom is typically found at a distance of about 5.3 10-11 m from the nucleus, which has a diameter of about 1.0 10-15 m. If you assume the hydrogen atom to be a sphere of...
-
Suppose that the demand for Coke and Pepsi in a small city are given by formulas (16) and (17). The marginal cost is $0.30 per can. Find the Nash equilibrium prices, expressing them as a function of...
-
(a) Show that the work done to remove the charge q from a distance r > a to infinity against the force, Eq. (2.6), of a grounded conducting sphere is Relate this result to the electrostatic...
-
The items at the top of the opposite page are components of Munsey Companys income statement for the year ended December 31, 20xx. Recast the income statement in proper multistep form, including...
-
Kristen Montana operates a retail clothing operation. She purchases all merchandise inventory on credit and uses a periodic inventory system. The accounts payable account is used for recording...
-
Financial concepts Match the financial concepts in Column A with the correct meaning in Column B , and the correct description of the concept in Column C . You may use the numbering as indicated...
-
Discuss risks associated with MAKING the journal entry. For instance, think about the timing, who makes the journal entry, or even patterns that may appear over time that would be of interest to...
-
The City of Bacon holds cash of \($820,000\) that was received from the issuance of a bond and, according to the contract, must be spent for the construction of a new elementary school. The city also...
-
Why is there a need for adjustments to a trial balance at the year end?
-
A company plans to sell 5,000 units; it has beginning inventory equal to 500 units and expects to have 800 units in ending inventory. How many units must be produced?
-
Is there, or should there be, a standard format for the financial statements of unincorporated businesses? Why or why not?
-
What amount of liability should the city recognize on fund-based financial statements at December 31, Year 1? Assume that all remaining vacations will be taken in July. a. It depends on whether the...
-
Hey, can I know how to solve this question to match the correct answer which is $2450?. You are provided with the following amounts for Susan Kim for the current year . Net employment income (ITA 5...
-
Refer to Example 9.15. Add the following functionality to this program: Allow the user to enter the cost of a gallon of gas on each trip and use a function, Cost() to calculate the cost of purchasing...
-
Product mix under constraint (Learning Objective 5) Easy Living of Charlotte, North Carolina, specializes in outdoor furniture and spas. Owner Linda Spring is expanding the store. She is deciding...
-
Outsourcing: alternative use of capacity (Learning Objective 6) Morning Grain makes organic cereal. Costs of producing 140,000 boxes of cereal each year follow: Suppose Kelloggs will sell Morning...
-
Sell or process further decision (Learning Objective 7) Acme Petroleum has spent $200,000 to refine 60,000 gallons of petroleum distillate. Suppose Acme Petroleum can sell the distillate for $6 a...
Study smarter with the SolutionInn App