Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Redhawk Company has two manufacturing departments Assembly and Fabrication. The company considers all of its manufacturing overhead costs to be fixed costs. The first set
Redhawk Company has two manufacturing departments Assembly and Fabrication. The company considers all of its manufacturing overhead costs to be fixed costs. The first set of data shown below is based on estimates that were made at the beginning of the year for the expected total output. The second set of data relates to one particular job completed during the year-Job A200. Estimated Data Manufacturing overhead costs Direct labor-hours Machine-hours... Job A200 Direct materials Direct labor Direct labor-hours Machine-hours.. Assembly $200,000 $400,000 15,000 15,000 20,000 50,000 Assembly $120 $60 8 hours Fabrication 2 hour Fabrication $40 $40 2 hours 5 hours Total $600,000 30,000 70,000 Total $160 $100 10 hours 7 hours Required: 1. If Redhawk uses a predetermined plantwide overhead rate with direct labor-hours as the allocation base, how much manufacturing overhead would be applied to Job A200? 2. If Redhawk uses predetermined departmental overhead rates with direct labor-hours as the allocation base in Assembly and machine-hours as the allocation base in Fabrication, how much total manufacturing overhead cost would be applied to Job A200? 3. Assume that Redhawk uses the departmental overhead rates mentioned in requirement 2 and that Job A200 includes 50 units. What is the unit product cost for Job A200? Redhawk Company has two manufacturing departments Assembly and Fabrication. The company considers all of its manufacturing overhead costs to be fixed costs. The first set of data shown below is based on estimates that were made at the beginning of the year for the expected total output. The second set of data relates to one particular job completed during the year-Job A200. Required: 1. If Redhawk uses a predetermined plantwide overhead rate with direct labor-hours as the allocation base, how much manufacturing overhead would be applied to Job A200? 2. If Redhawk uses predetermined departmental overhead rates with direct labor-hours as the allocation base in Assembly and machine-hours as the allocation base in Fabrication, how much total manufacturing overhead cost would be applied to Job A200? 3. Assume that Redhawk uses the departmental overhead rates mentioned in requirement 2 and that Job A200 includes 50 units. What is the unit product cost for Job A200
Redhawk Company has two manufacturing departments Assembly and Fabrication. The company considers all of its manufacturing overhead costs to be fixed costs. The first set of data shown below is based on estimates that were made at the beginning of the year for the expected total output. The second set of data relates to one particular job completed during the year-Job A200. Estimated Data Manufacturing overhead costs Direct labor-hours Machine-hours... Job A200 Direct materials Direct labor Direct labor-hours Machine-hours.. Assembly $200,000 $400,000 15,000 15,000 20,000 50,000 Assembly $120 $60 8 hours Fabrication 2 hour Fabrication $40 $40 2 hours 5 hours Total $600,000 30,000 70,000 Total $160 $100 10 hours 7 hours Required: 1. If Redhawk uses a predetermined plantwide overhead rate with direct labor-hours as the allocation base, how much manufacturing overhead would be applied to Job A200? 2. If Redhawk uses predetermined departmental overhead rates with direct labor-hours as the allocation base in Assembly and machine-hours as the allocation base in Fabrication, how much total manufacturing overhead cost would be applied to Job A200? 3. Assume that Redhawk uses the departmental overhead rates mentioned in requirement 2 and that Job A200 includes 50 units. What is the unit product cost for Job A200?
Step 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