Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

TB Problem Qu. 2-277 (Algo) Hultquist Corporation has two manufacturing... 400 Hultquist Corporation has two manufacturing departments-Forming and Customizing. The company used the following data

image text in transcribed
image text in transcribed
TB Problem Qu. 2-277 (Algo) Hultquist Corporation has two manufacturing... 400 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 (MH) 5,800 5,000 Estimated total fixed manufacturing overhead cost 10,000 $ 20,000 $ 12,000 $ 32,800 Estimated variable manufacturing overhead cost per MH $ 2.00 $ 4.00 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 $ 16,200 $ 9,500 Direct labor cost $ 22,900 $ 9,900 Forming machine-hours 2,700 2,300 Customizing machine-hours 4,600 Required: a. Assume that the company uses a plantwide 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 plantwide 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 plantwide 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 plantwide predetermined manufacturing overhead rate based on machine-hours and uses a markup of 80% 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.) 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.) 9. 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 80% on manufacturing cost to establish selling prices. Calculate the selling price for Job L (Do not round intermediate calculations.) per MH a. Predetermined overhead rate b. Manufacturing overhead applied c. Manufacturing cost d. Selling price e. Forming predetermined overhead rate f. Customizing predetermined overhead rate g. Manufacturing overhead applied job L h. Selling price for job L per MH per MH

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_2

Step: 3

blur-text-image_3

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

Sound Investing, Chapter 7 - Cash Versus Accrual

Authors: Kate Mooney

1st Edition

0071719296, 9780071719292

More Books

Students also viewed these Accounting questions

Question

a. Did you express your anger verbally? Physically?

Answered: 1 week ago