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Hultquist Corporation has two manufacturing departments--Forming and Customizing. The company used the following data at the
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Answer #1
Required a:
Forming Customizing Total
Estimated total machine-hours (MHs) 6000 4000 10000
(*) Estimated variable manufacturing overhead cost per MH 2.50 5.00
Estimated total variable manufacturing overhead 15000 20000 35000
Estimated total fixed manufacturing overhead cost 12600 10800 23400
Estimated total manufacturing overhead 27600 30800 58400
Plantwide predetermined overhead rate = Estimated total manufacturing overhead / Estimated total machine hours used = 58400 / 10000 5.84 per MH
Required b:
Job L
Forming machine-hours 3500
Customizing machine-hours 1500
Total machine-hours worked 5000
(*) Plantwide predetermined overhead rate 5.84
Manufacturing overhead applied 29200
Required c:
Job L
Direct materials   7700
Direct labor cost 7600
Manufacturing overhead applied 29200
Manufacturing cost 44500
Required d:
Job L
Manufacturing cost 44500
(+) Markup @ 20% of manufacturing cost 8900
Selling price 53400
Required e :
Forming predetermined overhead rate = ( Estimated total fixed manufacturing overhead cost / Estimated total machine hours ) + Estimated variable manufacturing overhead cost per MH = ( 12600 / 6000 ) + 2.50 4.60 per MH
Required f:
Customizing predetermined overhead rate = ( Estimated total fixed manufacturing overhead cost / Estimated total machine hours ) + Estimated variable manufacturing overhead cost per MH = ( 10800 / 4000 ) + 5.00 7.70 per MH
Required g :
Job L
Overhead of forming department ( 4.60 * 3500 ) 16100
Overhead of customizing department ( 7.70 * 1500 ) 11550
Manufacturing overhead applied to Job L 27650
Required h :
Job L
Direct materials 7700
Direct labor cost 7600
Manufacturing overhead applied 27650
Manufacturing cost 42950
(+) Markup @ 20% of manufacturing cost 8590
Selling price 51540
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