Question

fools Add-ons Help All changes saved in Drive ext, Times New.. - 12. BI VA C O - IE E- - 5 6) Olmscheid Corporation has two manufacturing departments --Molding and Customizing. The company used the following data at the beginning of the period to calculate predetermined overhead rates: 24 POINTS Moldin Customizi Total 5,000 5,000 Estimated total machine-hours (MH) 10,000 $21,000 $14,000 $35,000 Estimated total fixed manufacturing overhead cost Estimated variable manufacturing overhead cost per MH $1.50 $2.40 During the period, the company started and completed two jobs--Job F and Job K. There were no beginning inventories. Data concerning those two jobs follow: Job F Job K Direct materials $12,700 $6,400 Direct labor cost $19,100 $7,900 Molding machine-hours 3,400 1,600 Customizing machine-hours 2,000 3,000

Answer 1

a) Predetermined overhead rate= (Estimated total variable manufacturing overhead+estimated total fixed manufacturing overhead)/Estimated total machine hours

= $(5000*1.50+5000*2.40+35000)/10000

= $5.45 per MH

b) Manufacturing overhead applied to Job F= Total machine hours*Predetermined overhead rate

= (3400+2000)*$5.45

= $29430

c) Manufacturing overhead applied to Job K= Total machine hours*Predetermined overhead rate

= (1600+3000)*$5.45

= $25070

d)

	Job F
Direct materials	$12700
Direct labor	19100
Manufacturing overhead	29430
Total manufacturing cost	$61230

e)

	Job K
Direct materials	$6400
Direct labor	7900
Manufacturing overhead	25070
Total manufacturing cost	$39370

f) Selling price of Job F= Total manufacturing cost of Job F+30% of Total manufacturing cost of Job F

= $61230+30%*61230

= $79599

g) Selling price of Job K= Total manufacturing cost of Job K+30% of Total manufacturing cost of Job K

= $39370+30%*39370

= $51181

h) Cost of goods sold= Total manufacturing cost of Job F+Total manufacturing cost of Job K

= $61230+39370= $100600