TB Problem Qu. 2-281 Harnett Corporation has two manufacturing ... Harnett Corporation has two manufacturing departments--Molding and Assembly. The company used the following data at the beginning of the period to calculate predetermined overhead rates: Molding Assembly Total Estimated total machine-hours (MHs) 6,000 4,000 10,000 Estimated total fixed manufacturing overhead cost $ 36,600 $ 24,400 $ 61,000 Estimated variable manufacturing overhead cost per MH $ 2.00 $ 4.00 During the period, the company started and completed two jobs--Job E and Job M. Data concerning those two jobs follow: Job E Job M Direct materials $ 21,400 $ 8,400 Direct labor cost $ 21,600 $ 8,400 Molding machine-hours 2,700 3,300 Assembly machine-hours 400 3,600 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 E. (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 E. (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 20% on manufacturing cost to establish selling prices. Calculate the selling price for Job E. (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 Molding 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 Assembly 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 E? (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 E. (Do not round intermediate calculations.)
a. Assume that the company uses a plantwide predetermined manufacturing overhead rate based on machine-hours. Calculate that overhead rate.
Plantwide predetermined overhead rate= Estimated total manufacturing cost/Estimated total machine hours
= (6000*$2.00+4000*$4.00+61000)/10000
= $8.90 per MH
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 E.
Manufacturing overhead applied to Job E= (2700+400)*$8.90= $27590
c. Assume that the company uses a plantwide predetermined manufacturing overhead rate based on machine-hours. Calculate the total manufacturing cost assigned to Job E.
Job E | |
Direct materials | $21400 |
Direct labor | 21600 |
Manufacturing overhead applied (2700+400)*$8.90 | 27590 |
Total manufacturing cost | $70590 |
d. Assume that the company uses a plantwide 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 E.
Job E | |
Total manufacturing cost | $70590 |
Add: Markup (70590*20%) | 14118 |
Selling price for Job E | $84708 |
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 Molding department?
Molding= Total fixed manufacturing overhead cost/Machine hours+Variable manufacturing overhead per machine hour
= $36600/6000+$2.00= $8.10 per MH
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 Assembly department?
Assembly= Total fixed manufacturing overhead cost/Machine hours+Variable manufacturing overhead per machine hour
= $24400/4000+$4.00= $10.10 per MH
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 E?
Manufacturing overhead applied to Job E= 2700*$8.10+400*$10.10= $25910
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 E.
Job E | |
Direct materials | $21400 |
Direct labor | 21600 |
Manufacturing overhead applied (2700*$8.10+400*$10.10) | 25910 |
Total manufacturing cost | $68910 |
Add: Markup (68910*20%) | 13782 |
Selling price | $82692 |
TB Problem Qu. 2-281 Harnett Corporation has two manufacturing ... Harnett Corporation has two manufacturing departments--Molding...
Harnett Corporation has two manufacturing departments--Molding and Assembly. The company used the following data at the beginning of the period to calculate predetermined overhead rates: Molding Assembly Total Estimated total machine-hours (MHs) 2,000 8,000 10,000 Estimated total fixed manufacturing overhead cost $ 12,200 $ 64,000 $ 76,200 Estimated variable manufacturing overhead cost per MH $ 3.00 $ 6.00 During the period, the company started and completed two jobs--Job E and Job M. Data concerning those two jobs follow: Job E...
Harnett Corporation has two manufacturing departments--Molding and Assembly. The company used the following data at the beginning of the period to calculate predetermined overhead rates: Molding Assembly Total Estimated total machine-hours (MHs) 2,000 8,000 10,000 Estimated total fixed manufacturing overhead cost $ 8,800 $ 39,200 $ 48,000 Estimated variable manufacturing overhead cost per MH $ 1.50 $ 3.00 During the period, the company started and completed two jobs--Job E and Job M. Data concerning those two jobs follow: Job E...
Harnett Corporation has two manufacturing departments--Molding and Assembly. The company used the following data at the beginning of the period to calculate predetermined overhead rates: Molding Assembly Total Estimated total machine-hours (MHs) 6,000 4,000 10,000 Estimated total fixed manufacturing overhead cost $ 36,600 $ 24,400 $ 61,000 Estimated variable manufacturing overhead cost per MH $ 2.00 $ 4.00 During the period, the company started and completed two jobs--Job E and Job M. Data concerning those two jobs follow: Job E...
Harnett Corporation has two manufacturing departments --Molding and Assembly. The company used the following data at the beginning of the period to calculate predetermined overhead rates: Estimated total machine-hours (MHS) Estinated total fixed manufacturing overhead cost Estimated variable manufacturing overhead cost per MH Molding 8,000 $32,800 $ 3.ee Assembly 2,eee $9,400 $ 6.00 Total 10,000 $42,200 During the period, the company started and completed two jobs-Job E and Job M. Data cancerning those two jobs follow: Direct materials Direct labor...
Harnett Corporation has two manufacturing departments--Molding and Assembly. 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 Molding 7,000 $ 39,900 $ 2.00 Assembly 3,000 $ 18,600 $ 4.00 Total 10,000 $ 58,500 During the period, the company started and completed two jobs--Job E and Job M. Data concerning those two jobs follow: Direct materials...
Harnett Corporation has two manufacturing departments--Molding
and Assembly. The company used the following data at the beginning
of the period to calculate predetermined overhead rates:
:
Harnett Corporation has two manufacturing departments--Molding and Assembly. The company used the following data at the beginning of the period to calculate predetermined overhead rates Molding Assembly Total Estimated total machine-hours (MHs) Estimated total fixed manufacturing overhead cost Estimated variable manufacturing overhead cost per MEH 6,000 $ 21,600 $2.50 10,000 $ 24,400 46,000 4,000...
Harnett Corporation has two manufacturing departments--Molding
and Assembly. The company used the following data at the beginning
of the period to calculate predetermined overhead rates:
Molding
Assembly
Total
Estimated total machine-hours (MHs)
3,000
7,000
10,000
Estimated total fixed manufacturing overhead cost
$
24,000
$
53,200
$
77,200
Estimated variable manufacturing overhead cost per MH
$
1.00
$
2.00
During the period, the company started and completed two
jobs--Job E and Job M. Data concerning those two jobs follow:
Job E...
1 comtinued
2.
2 continued
Harnett Corporation has two manufecturing departments-Molding and Assembly. The company used the following dato at the beginning of the period to calculate predetermined overheed rates: 9,000 $ 45,900 7,600 후 53,500 1.503.00 1,000 10,000 Estinated total fixed manufacturing overhead cost During the period, the company started and completed two jobs-Job E and Job M. Data concerning those two jobs follow. $21,800 $9,000 22,100 $8,500 2,500 6,500 500 500 a. Assume that the company uses a...
Harnett Corporation has two manufacturing departments--Molding
and Assembly. The company used the following data at the beginning
of the period to calculate predetermined overhead rates:
Molding
Assembly
Total
Estimated total machine-hours (MHs)
3,000
7,000
10,000
Estimated total fixed manufacturing overhead cost
$
24,000
$
53,200
$
77,200
Estimated variable manufacturing overhead cost per MH
$
1.00
$
2.00
During the period, the company started and completed two
jobs--Job E and Job M. Data concerning those two jobs follow:
Job E...
Harnett Corporation has two manufacturing departments--Molding
and Assembly. The company used the following data at the beginning
of the period to calculate predetermined overhead rates:
Molding
Assembly
Total
Estimated total machine-hours (MHs)
3,000
7,000
10,000
Estimated total fixed manufacturing overhead cost
$
24,000
$
53,200
$
77,200
Estimated variable manufacturing overhead cost per MH
$
1.00
$
2.00
During the period, the company started and completed two
jobs--Job E and Job M. Data concerning those two jobs follow:
Job E...