Question 1

Hultquist Corporation has two manufacturing departments--Forming and Customizing. The company used the following data at the beginning of the period to calculate predetermined overhead rates:

Forming Customizing Total

Estimated total machine-hours (MHs) 9,000 1,000 10,000

Estimated total fixed manufacturing overhead cost $31,500 $2,200 $33,700

Estimated variable manufacturing overhead cost per MH $2.50 $5.00

During the period, the company started and completed two jobs--Job C and Job L. Data concerning those two jobs follow:

Job C Job L

Direct materials $16,800 $10,100

Direct labor cost $23,500 $10,400

Forming machine-hours 2,500 6,500

Customizing machine-hours 500 500

Required:

a. Assume that the company uses a plant wide predetermined manufacturing overhead rate based on machine-hours. Calculate that overhead rate.(Round your answer to 2 decimal places.)

b. Assume that the company uses a plant wide predetermined manufacturing overhead rate based on machine-hours. Calculate the amount of manufacturing overhead applied to Job L.(Do not round intermediate calculations.)

c. Assume that the company uses a plant wide predetermined manufacturing overhead rate based on machine-hours. Calculate the total manufacturing cost assigned to Job L.(Do not round intermediate calculations.)

d. Assume that the company uses a plant wide predetermined manufacturing overhead rate based on machine-hours and uses a markup of 20% on manufacturing cost to establish selling prices. Calculate the selling price for Job L.(Do not round intermediate calculations.)

e. Assume that the company uses departmental predetermined overhead rates with machine-hours as the allocation base in both departments. What is the departmental predetermined overhead rate in the Forming department?(Round your answer to 2 decimal places.)

f. Assume that the company uses departmental predetermined overhead rates with machine-hours as the allocation base in both production departments. What is the departmental predetermined overhead rate in the Customizing department?(Round your answer to 2 decimal places.)

g. Assume that the company uses departmental predetermined overhead rates with machine-hours as the allocation base in both production departments. How much manufacturing overhead will be applied to Job L?(Do not round intermediate calculations.)

h. Assume that the company uses departmental predetermined overhead rates with machine-hours as the allocation base in both production departments. Further assume that the company uses a markup of 20% on manufacturing cost to establish selling prices. Calculate the selling price for Job L.(Do not round intermediate calculations.)

QUESTION 2

Cull Corporation uses a job-order costing system with a single plant wide predetermined overhead rate based on machine-hours. The company based its predetermined overhead rate for the current year on total fixed manufacturing overhead cost of $497,700, variable manufacturing overhead of $2.70 per machine-hour, and 63,000 machine-hours. The company has provided the following data concerning Job X455 which was recently completed:

Number of units in the job 20

Total machine-hours 80

Direct materials $750

Direct labor cost $1,500

If the company marks up its unit product costs by 25% then the selling price for a unit in Job X455 is closest to:(Round your intermediate calculations to 2 decimal places.)

Questions 3

Job 910 was recently completed. The following data have been recorded on its job cost sheet:

Direct materials $2,418

Direct labor-hours 74 labor-hours

Direct labor wage rate $13 per labor-hour

Machine-hours 137 machine-hours

The Corporation applies manufacturing overhead on the basis of machine-hours. The predetermined overhead rate is $14 per machine-hour. The total cost that would be recorded on the job cost sheet for Job 910 would be:

Question 4

Lupo Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours. The company based its predetermined overhead rate for the current year on the following data:

Total machine-hours 31,800

Total fixed manufacturing overhead cost $159,000

Variable manufacturing overhead per machine-hour $2

Recently, Job T687 was completed with the following characteristics:

Number of units in the job 10

Total machine-hours 30

Direct materials $660

Direct labor cost $1,320

The unit product cost for Job T687 is closest to:(Round your intermediate calculations to 2 decimal places.)

Question 5

Bulla Corporation has two production departments, Machining and Customizing. The company uses a job-order costing system and computes a predetermined overhead rate in each production department. The Machining Department's predetermined overhead rate is based on machine-hours and the Customizing Department's predetermined overhead rate is based on direct labor-hours. At the beginning of the current year, the company had made the following estimates:

Machining Customizing

Machine-hours 20,000 16,000

Direct labor-hours 5,000 1,000

Total fixed manufacturing overhead cost $80,000 $73,600

Variable manufacturing overhead per machine-hour $2.00

Variable manufacturing overhead per direct labor-hour $4.00

During the current month the company started and finished Job K369. The following data were recorded for this job:

Job K369: Machining Customizing

Machine-hours 80 10

Direct labor-hours 30 70

Required:

Calculate the total amount of overhead applied to Job K369 in both departments.(Do not round intermediate calculations.)

Question 6

Comans Corporation has two production departments, Milling and Customizing. The company uses a job-order costing system and computes a predetermined overhead rate in each production department. The Milling Department's predetermined overhead rate is based on machine-hours and the Customizing Department's predetermined overhead rate is based on direct labor-hours. At the beginning of the current year, the company had made the following estimates:

Milling Customizing

Machine-hours 27,000 12,000

Direct labor-hours 16,000 8,000

Total fixed manufacturing overhead cost $137,700 $47,200

Variable manufacturing overhead per machine-hour $1.30

Variable manufacturing overhead per direct labor-hour $3.80

During the current month the company started and finished Job A319. The following data were recorded for this job:

Job A319: Milling Customizing

Machine-hours 70 10

Direct labor-hours 50 40

Direct materials $630 $170

Direct labor cost $700 $510

If the company marks up its manufacturing costs by 20% then the selling price for Job A319 would be closest to:(Round your intermediate calculations to 2 decimal places.)