Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Marine Components produces parts for airplanes and ships. The parts are produced to specification by their customers, who pay either a fixed price (the price

image text in transcribed
image text in transcribed
image text in transcribed
Marine Components produces parts for airplanes and ships. The parts are produced to specification by their customers, who pay either a fixed price (the price does not depend directly on the cost of the job) or price equal to recorded cost plus a fored fee (cost plus). For the upcoming year (year 2). Marine expects only two clients (client 1 and client 2). The work done for clients will all be done under fixed price contracts while the work done for client will all be done under cost plus contracts. Manufacturing overhead for year 2 is estimated to be 58 million Other budgeted data for year 2 include the following allent et Machine hour's (thousands) 2,000 Direct labor cost (5000) Required: a. Compute the predetermined rate assuming that Marine Components uses machine hours to apply overhead b. Compute the predetermined rate assuming that Marine Components uses direct labor cost to apply overhead Complete this question by entering your answers in the tabs below. Required A Required B Compute the predetermined rate assuming that Marine Components uses machine-hours to apply overhead. (Round your answer to 2 decimal places.) Application rate per machine hour Required 8 > Complete this question by entering your answers in the tabs below. Required A Required B Compute the predetermined rate assuming that Marine Components uses direct labor cost to apply o Application rate % of direct labor cost Exercise 7-35 (Algo) Applying Overhead Using a Predetermined Rate (LO 7-3) Mary's Landscaping uses a job order cost system. The following debits (credits) appeared in Work In Process Inventory for August Description Amount August 1 Balance $ 14,000 For the month Direct materials 1,100 For the month Direct labor 54,900 For the month Factory overhead 42,273 For the month To finished goods (161,100) Mary's applies overhead to production at a predetermined rate of 77 percent based on direct labor cost Job 3318, which was started during August and is the only job still in process at the end of August, has been charged direct labor of $6.100. Required: What cost amount of direct materials was charged to Job 3318? Direct materials

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

Accounting Theory And Practice

Authors: M. W. E. Glautier, Brian Underdown

7th Edition

0273651617, 978-0273651611

More Books

Students also viewed these Accounting questions

Question

Explain the benefits of a health and wellness strategy

Answered: 1 week ago

Question

Describe the components of a workplace wellness programme

Answered: 1 week ago