Bierce Corporation has two manufacturing departments--Machining and Finishing. The company used the following data at the beginning of the year to calculate predetermined overhead rates:
Machining | Finishing | Total | ||||
Estimated total machine-hours (MHs) | 7,000 | 3,000 | 10,000 | |||
Estimated total fixed manufacturing overhead cost | $ | 8,400 | $ | 11,700 | $ | 20,100 |
Estimated variable manufacturing overhead cost per MH | $ | 3.00 | $ | 5.00 | ||
During the most recent month, the company started and completed two jobs--Job B and Job K. There were no beginning inventories. Data concerning those two jobs follow:
Job B | Job K | |||||
Direct materials | $ | 21,400 | $ | 8,600 | ||
Direct labor cost | $ | 21,800 | $ | 1,250 | ||
Machining machine-hours |
5,000 | 2,000 | ||||
Finishing machine-hours | 500 | 2,500 | ||||
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 B. (Do not round intermediate calculations.)
c. Assume that the company uses a plantwide predetermined manufacturing overhead rate based on machine-hours. Calculate the amount of manufacturing overhead applied to Job K. (Do not round intermediate calculations. Round your answer to the nearest whole dollar amount.)
d. 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 Machining department? (Round your answer to 2 decimal places.)
e. 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 Finishing 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. How much manufacturing overhead will be applied to Job B? (Do not round intermediate calculations.)
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 K?. (Do not round intermediate calculations.)
a. Plant wide predetermined manufacturing overhead rate = $20,100+36,000 (7,000*$3+3,000*$5) / 10,000
Plant wide predetermined manufacturing overhead rate = $5.61 per machine hour
b. Manufacturing overhead applied to Job B = (5,000+500) * $5.61
Manufacturing overhead applied to Job B = $30,855
c. Manufacturing overhead applied to Job K = (2,000+2,500) * $5.61
Manufacturing overhead applied to Job K = $25,245
d. Departmental predetermined overhead rate in Machining department = $3 + 8,400/7,000 = $4.2 per machine hour
e. Departmental predetermined overhead rate in Finishing department = $5 + 11,700/3,000 = $8.9 per machine hour
f. Manufacturing overhead applied to Job B = 5,000*$4.2 + 500*$8.9
Manufacturing overhead applied to Job B = $21,000+4,450 = $25,450
g. Manufacturing overhead applied to Job K = 2,000*$4.2 + 2,500*$8.9
Manufacturing overhead applied to Job K = $8,400 + 22,250 = $30,650
Bierce Corporation has two manufacturing departments--Machining and Finishing. The company used the following data at the...
Bierce Corporation has two manufacturing departments--Machining and Finishing. The company used the following data at the beginning of the year to calculate predetermined overhead rates: Estimated total machine-hours (MHS) Estimated total fixed manufacturing overhead cost Estimated variable manufacturing overhead cost per MH Machining Finishing 4,000 6,000 $ 5,200 $ 20,400 $ 1.50 $ 6.00 Total 10,000 $ 25,600 During the most recent month, the company started and completed two jobs--Job B and Job K. There were no beginning inventories. Data...
Bierce Corporation has two manufacturing departments--Machining and Finishing. The company used the following data at the beginning of the year to calculate predetermined overhead rates: Estimated total machine-hours (MS) Estimated total fixed manufacturing overhead cost Estimated variable manufacturing overhead cost per MH Machining Finishing 6,000 5,000 $ 5,100 $ 39,200 $ 1.40 $ 2.00 Total 11,000 $ 44,300 During the most recent month, the company started and completed two jobs Job B and Job K. There were no beginning inventories....
Bierce Corporation has two manufacturing departments--Machining and Finishing. The company used the following data at the beginning of the year to calculate predetermined overhead rates: Estimated total machine-hours (MHS) Estimated total fixed manufacturing overhead cost Estimated variable manufacturing overhead cost per MH Machining Finishing 5,000 5,000 $ 6,500 $ 29,500 $ 2.00 $ 4.00 Total 10,000 $ 36,000 During the most recent month, the company started and completed two jobs-- Job B and Job K. There were no beginning inventories....
Bierce Corporation has two manufacturing departments--Machining and Finishing. The company used the following data at the beginning of the year to calculate predetermined overhead rates: Machining Finishing Total Estimated total machine-hours (MHs) 9,000 8,000 17,000 Estimated total fixed manufacturing overhead cost $ 18,000 $ 7,800 $ 25,800 Estimated variable manufacturing overhead cost per MH $ 2.70 $ 5.00 During the most recent month, the company started and completed two jobs--Job B and Job K. There were no beginning inventories. Data...
Bierce Corporation has two manufacturing departments--Machining and Finishing. The company used the following data at the beginning of the year to calculate predetermined overhead rates: Machining Finishing Total Estimated total machine-hours (MHs) 7,000 3,000 10,000 Estimated total fixed manufacturing overhead cost $ 8,400 $ 11,700 $ 20,100 Estimated variable manufacturing overhead cost per MH $ 3.00 $ 5.00 During the most recent month, the company started and completed two jobs--Job B and Job K. There were no beginning inventories. Data...
Bierce Corporation has two manufacturing departments--Machining and Finishing. The company used the following data at the beginning of the year to calculate predetermined overhead rates: Machining Finishing Total Estimated total machine-hours (MHs) 7,000 3,000 10,000 Estimated total fixed manufacturing overhead cost $ 8,400 $ 11,700 $ 20,100 Estimated variable manufacturing overhead cost per MH $ 3.00 $ 5.00 During the most recent month, the company started and completed two jobs--Job B and Job K. There were no beginning inventories. Data...
Bierce Corporation has two manufacturing departments--Machining and Finishing. The company used the following data at the beginning of the year to calculate predetermined overhead rates: Estimated total machine-hours (MH) Estimated total fixed manufacturing overhead cost Estimated variable manufacturing overhead cost per MH Machining Finishing 6,000 5,000 $ 5,100 $ 39,200 $ 1.40 $ 2.00 Total 11,000 $ 44,300 During the most recent month, the company started and completed two jobs-Job B and Job K. There were no beginning inventories. Data...
Bierce Corporation has two manufacturing departments--Machining and Finishing. The company used the following data at the beginning of the year to calculate predetermined overhead rates: Estimated total machine-hours (MHS) Estimated total fixed manufacturing overhead cost Estimated variable manufacturing overhead cost per MH Machining 2,000 $ 2,400 $ 2.10 Finishing 8,000 $ 64,000 $ 6.00 Total 10,000 $ 66,400 During the most recent month, the company started and completed two jobs--Job B and Job K. There were no beginning inventories. Data...
Bierce Corporation has two manufacturing departments--Machining and Finishing. The company used the following data at the beginning of the year to calculate predetermined overhead rates: Machining Finishing Total Estimated total machine-hours (MHs) 9,000 8,000 17,000 Estimated total fixed manufacturing overhead cost $ 18,000 $ 7,800 $ 25,800 Estimated variable manufacturing overhead cost per MH $ 2.70 $ 5.00 During the most recent month, the company started and completed two jobs--Job B and Job K. There were no beginning inventories. Data...
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: Estimated total machine-hours (MHS) Estimated total fixed manufacturing overhead cost Estimated variable manufacturing overhead cost per MH Forming 6,000 $ 24,000 $ 1.00 Customizing 4,000 $10,400 $ 2.00 Total 10,000 $34,400 During the period, the company started and completed two jobs--Job C and Job L. Data concerning those two jobs follow: Direct materials Direct labor...