Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Lane Corpul quot uses a ju-uur curry system. ALLE veya ule yedi, e Londry Houeue TURUWHY SIE Direct labor-hours required to support estimated production Machine-hours

image text in transcribed
Lane Corpul quot uses a ju-uur curry system. ALLE veya ule yedi, e Londry Houeue TURUWHY SIE Direct labor-hours required to support estimated production Machine-hours required to support estimated production Fixed mopufacturing overhead cost Variabld manufacturing overhead cost per direct labor-hour Variable manufacturing overhead cost per machine-hour 130,000 65,000 $364,000 5 4.00 $ 8.00 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 $ 253 $ 349 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 5507 (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) DUH Direct labor hours a Predetermined overhead rate b. Total manufacturing cost of Job 560 Selling price 2. Machine-hours: a Predetermined overhead role b. Total manufacturing cost of Job 560 e. Selling price

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

College Accounting, Chapters 1-27

Authors: James A. Heintz, Robert W. Parry

21st Edition

1285055411, 9781285055411

More Books

Students also viewed these Accounting questions

Question

define and assess job burnout, boredom at work and work engagement;

Answered: 1 week ago