1) Direct-labor hours | ||
a. Predetermined overhead rate | $ 7.60 | per DLH |
b. Total manufacturing cost of Job 550 | $ 514 | |
c. Selling price | $ 1,542 | |
2) Machine-hours | ||
a. Predetermined overhead rate | $ 15.20 | per MH |
b. Total manufacturing cost of Job 550 | $ 476 | |
c. Selling price | $ 1,428 | |
1) | ||
a) Plant wide predetermined overhead rate | ||
Fixed Manufacturing overhead cost | $ 784,000 | |
Direct labor hours | 140,000 | |
Fixed manufacturing overhead per direct labor hour | (784,000 / 140,000) | |
$ 5.60 | ||
Variable overhead rate per direct labor hour | $ 2.00 | |
Fixed overhead rate per direct labor hour | 5.60 | |
Plant wide predetermined overhead rate | $ 7.60 | |
b) Cost of Job 550 | ||
Direct materials | $ 175 | |
Direct labor | 225 | |
Manufacturing overhead (15 hours × $ 7.60) | 114 | |
Cost of Job 550 | $ 514 | |
c) | ||
Cost of Job 550 | $ 514 | |
Add: Markup percentage 200% ($ 514 × 200%) | 1,028 | |
Selling price | $ 1,542 | |
2) | ||
a) Plant wide predetermined overhead rate | ||
Fixed Manufacturing overhead cost | $ 784,000 | |
Machine hours | 70,000 | |
Fixed manufacturing overhead per machine hour | (784,000 / 70,000) | |
$ 11.20 | ||
Variable overhead rate per machine hour | $ 4.00 | |
Fixed overhead rate per machine hour | 11.20 | |
Plant wide predetermined overhead rate | $ 15.20 | |
b) Cost of Job 550 | ||
Direct materials | $ 175 | |
Direct labor | 225 | |
Manufacturing overhead (5 hours × $ 15.20) | 76 | |
Cost of Job 550 | $ 476 | |
c) | ||
Cost of Job 550 | $ 476 | |
Add: Markup percentage 200% ($ 476 × 200%) | 952 | |
Selling price | $ 1,428 |
Landen Corporation uses a job-order costing system. At the beginning of the year, the company made...
Landen Corporation uses a job-order costing system. At the beginning of the year, the company made the following estimates: 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 machine-hour 160,000 80,000 $ 480,000 $ 5.00 $ 10.00 During the year, Job 550 was started and completed. The following information is available with respect to this job: $ 240 $ 233...
Landen Corporation uses a job-order costing system. At the beginning of the year, the company made the following estimates: 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 machine-hour 110,000 55,000 $308,000 $ 3.20 $ 6.40 During the year, Job 550 was started and completed. The following information is available with respect to this job: $ 187 $ 370 Direct...
Landen Corporation uses a job-order costing system. At the beginning of the year, the company made the following estimates: 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 machine-hour 150,000 75,000 $420,000 4.60 9.20 During the year, Job 550 was started and completed. The following information is available with respect to this job: Direct materials $195 Direct labor cost 288...
Landen Corporation uses a job-order costing system. At the beginning of the year, the company made the following estimates: Direct labor-hours required to support estimated production Machine-hours required to support estimated production Pixed manufacturing overhead cost Variable manufacturing overhead cost per direct labor-hour Variable manufacturing overhead cost per machine-hour 140,000 70,000 $ 784,000 $ 2.00 $ 4.00 During the year, Job 550 was started and completed. The following information is available with respect to this job: Direct materials Direct labor...
Landen Corporation uses a job-order costing system. At the beginning of the year, the company made the following estimates: 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 machine-hour 60,000 30,000 $180,00 1.6 2.00 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...
Landen Corporation uses a job-order costing system. At the beginning of the year, the company made the following estimates: 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 machine-hour 115,000 57,500 $322,000 $ 3.40 $ 6.80 During the year, Job 550 was started and completed. The following information is available with respect to this job: $ 252 $ 370 Direct...
Landen Corporation uses a job-order costing system. At the beginning of the year, the company made the following estimates: 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 machine-hour 155,000 77,500 $465,000 $ 4.80 $ 9.60 During the year, Job 550 was started and completed. The following information is available with respect to this job: $ 210 $ 349 Direct...
Landen Corporation uses a job-order costing system. At the beginning of the year, the company made the following estimates: 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 machine-hour 60,000 30,000 $180,000 $ 1.00 $ 2.00 During the year, Job 550 was started and completed. The following information is available with respect to this job: Direct materials Direct labor cost...
Landen Corporation uses a job-order costing system. At the beginning of the year, the company made the following estimates: Direct labor-hours required to support estimated production Machine-hours required to support estimated production Pixed manufacturing overhead cost Variable manufacturing overhead cost per direct labor-hour Variable manufacturing overhead cost per machine-hour 125,000 62,500 $350,000 $ 3.80 $ 7.60 During the year, Job 550 was started and completed. The following information is available with respect to this job: Direct materials Direct labor cost...
Landen Corporation uses a job-order costing system. At the beginning of the year, the company made the following estimates: 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 machine-hour 140,000 70,000 $784,000 $ 2.00 $ 4.00 During the year, Job 550 was started and completed. The following information is available with respect to this job: $ 175 $ 225 Direct...