Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Please see attached.I wanted to see if you could check my answers. Bierce Corporation has two manufacturing departmentsMachining and Finishing. The company used the following
Please see attached.I wanted to see if you could check my answers.
Bierce Corporation has two manufacturing departmentsMachining and Finishing. The company used the following data at the beginning of the year to calculate predetermined overhead rates: Estimated total machinehours (MHs) Estimated total fixed manufacturing overhead cost Estimated variable manufacturing overhead cost per MH Machining 5,000 $ 6,500 $ 2.00 Finishing 5,000 $29,500 $ 4.00 During the most recent month, the company started and completed two jobsJob B and Job K. There were no beginning inventories. Data concerning those two jobs follow: Direct materials Direct labor cost Machining machinehours Finishing machinehours $ $ Job B Job K 16,200 $ 8,400 22,700 $ 2,500 4,000 2,500 1,000 20 Required: a. Assume that the company uses a plantwide predetermined manufacturing overhead rate based on machinehours. Calculate that overhead rate. (Round your answer to 2 decimal places.) My answer: 36,000 + (2.00*5,000) +(5,000*4)/10,000 = 46,000 +20,000 = 6.6 b. Assume that the company uses a plantwide predetermined manufacturing overhead rate based on machinehours. Calculate the amount of manufacturing overhead applied to Job B. (Do not round intermediate calculations.) My answer: 4,000 + 1,000(6.6) = 33,000 c. Assume that the company uses a plantwide predetermined manufacturing overhead rate based on machinehours. Calculate the amount of manufacturing overhead applied to Job K. (Do not round intermediate calculations. Round your answer to the nearest whole dollar amount.) My answer: 2,500+20(6.6) = 16,632 Total 10,000 $ 36,000 d. Assume that the company uses departmental predetermined overhead rates with machinehours as the allocation base in both departments. What is the departmental predetermined overhead rate in the Machining department? (Round your answer to 2 decimal places.) My answer: 6500 + (5000*2.00)/5000 = 3.30 e. Assume that the company uses departmental predetermined overhead rates with machinehours as the allocation base in both production departments. What is the departmental predetermined overhead rate in the Finishing department? (Round your answer to 2 decimal places.) My answer: 29500+(5000*4.00)/5000 = 9.90 f. Assume that the company uses departmental predetermined overhead rates with machinehours as the allocation base in both production departments. How much manufacturing overhead will be applied to Job B? (Do not round intermediate calculations.) My answer: (4000*3.3) + (1000*9.9) = 23100 g. Assume that the company uses departmental predetermined overhead rates with machinehours as the allocation base in both production departments. How much manufacturing overhead will be applied to Job K?. (Do not round intermediate calculations.) My answer: 2500*3.3) + (20*9.9) = 8448Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started