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 | Job M | |||||
Direct materials | $ | 21,600 | $ | 9,300 | ||
Direct labor cost | $ | 22,600 | $ | 9,500 | ||
Molding machine-hours | 2,500 | 500 | ||||
Assembly machine-hours | 2,500 | 4,500 | ||||
Required:
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.)
Concept:
Plant-wide predetermined manufacturing overhead rate = (Estimated total fixed overheads (all departments) / Estimated allocation base) + Variable overhead per MH
Departmental predetermined overhead rate = (Estimated departmental fixed overheads / Estimated allocation base of the department) + Variable overhead per MH
Answer:
d. Selling Price for Job E
e. Molding predetermined overhead rate = ($24,000 / 3,000 hrs) + $1.00 = $9.00 per MH
f. Assembly predetermined overhead rate = ($53,200 / 7,000 hrs) + $2.00 = $9.60 per MH
Harnett Corporation has two manufacturing departments--Molding and Assembly. The company used the following data at the...
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: : 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: 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: 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: 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: 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...
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...
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...