Problem 2-16 Plantwide Predetermined Overhead Rates; Pricing (L02-1, LO2-2, LO2-3] Landen Corporation uses a job-order costing system. At the beginning of the year, the company made the following estimates: 6:55 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 nachine-hour 155,000 77,500 $465,000 $ 4.80 $ 9.60 d 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 $ 210 $ 349 15 5 1 net 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) Mlavi #7 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 ploces. Round your "Predetermined Overhead Rote" answers to 2 decimal places and all other onswers to the nearest whole dollor.) es por DLH 1. Direct labor-hours a Predetermined overhead rale b. Total manufacturing cost of Job 550 c. Selling price 2. Machine-hours a Predetermined overhead file b. Total manufacturing cost of Job 550 C. Selling price Der MH Exercise 3-5 Journal Entries and T-accounts [LO3-1, LO3-2) The Polaris Company uses a job-order costing system. The following transactions occurred in October 52 a. Raw materials purchased on account, $211.000. b. Raw materials used in production, $189,000 ($151,200 direct materials and $37,800 indirect materials). c. Accrued direct labor cost of $50,000 and indirect labor cost of $20,000. d. Depreciation recorded on factory equipment, $105,000. e. Other manufacturing overhead costs accrued during October $130,000. f. The company apples manufacturing overhead cost to production using a predetermined rate of $10 per machine-hour . A total of 76,300 machine hours were used in October g. Jobs costing $513.000 according to their job cost sheets were completed during October and transferred to Finished Goods h. Jobs that had cost $452.000 to complete according to their job cost sheets were shipped to customers during the month. These jobs were sold on account at 22% above cost. es Required: 1. Prepare journal entries to record the transactions given above. 2. Prepare T-accounts for Manufacturing Overhead and Work in Process. Post the relevant transactions from above to each account. Compute the ending balance in each account, assuming that Work in Process has a beginning balance of $34.000. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare journal entries to record the transactions given above. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 2 3 4 5 6 7 8 9 Raw materials purchased on account, $211,000 Note: Enter debits before credits Transaction General Journal Debit Credit Journal entry worksheet Journal entry worksheet Jobs costing $513,000 according to their job cost sheets were completed during October and transferred to Finished Goods. Note: Enter debits before credits. Transaction General Journal Debit Credit 9 Record entry Clear entry View general Journal Journal entry worksheet Record the cost of goods sold. Note: Enter debits before credits. Transaction General Journal Debit Credit h(1) Record entry Clear entry View general journal Journal entry worksheet Complete this question by entering your answers in the tabs below. Reg 1 to 5 Reg 6 Req 7 Req8 If overhead is applied to production on the basis of direct labor cost, what predetermined overhead rate was in effect during the year? The predetermined overhead rate was % of direct labor cost Complete this question by entering your answers in the tabs below. Reg 1 to 5 Reg 6 Reg 7 Req Was manufacturing overhead underapplied or overapplied? By how much? Manufacturing overhead was by ( Req6 Req8 > Complete this question by entering your answers in the tabs below. Req 1 to 5 Reg 6 Req 7 Req 8 Compute the ending balance in Work in Process. Assume that this balance consists entirely of goods started during the year. IF $9,750 of this balance is direct labor cost, how much of it is direct materials cost? Applied overhead cost? Ending balance in the work in process Direct materials cost Applied overhead cost