Comans Corporation has two production departments, Milling and Customizing. The company uses a job-order costing system and computes a predetermined overhead rate in each production department. The Milling Department’s predetermined overhead rate is based on machine-hours and the Customizing Department’s predetermined overhead rate is based on direct labor-hours. At the beginning of the current year, the company had made the following estimates:
Milling | Customizing | |||||
Machine-hours | 21,000 | 12,000 | ||||
Direct labor-hours | 14,000 | 5,000 | ||||
Total fixed manufacturing overhead cost | $ | 63,000 | $ | 24,000 | ||
Variable manufacturing overhead per machine-hour | $ | 2.00 | ||||
Variable manufacturing overhead per direct labor-hour | $ | 5.00 | ||||
During the current month the company started and finished Job A319. The following data were recorded for this job:
Job A319: | Milling | Customizing | ||||
Machine-hours | 70 | 30 | ||||
Direct labor-hours | 20 | 40 | ||||
Direct materials | $ | 590 | $ | 200 | ||
Direct labor cost | $ | 760 | $ | 600 | ||
If the company marks up its manufacturing costs by 10% then the selling price for Job A319 would be closest to:
milling | |||||||
predetermined overhead rate | |||||||
FOH | (63000/21000)= | 3 | |||||
VMOH | 2 | ||||||
predetermined overhead rate | 5 | per mh | |||||
Customizing | |||||||
predetermined overhead rate | |||||||
FOH | (24000/5000)= | 4.8 | |||||
VMOH | 5 | ||||||
predetermined overhead rate | 9.80 | per DLH's | |||||
Job A319: | |||||||
milling | Customizing | ||||||
Direct materials | 590 | 200 | |||||
direct labor | 760 | 600 | |||||
overhead applied | |||||||
milling | (5*70) | 350 | |||||
customizing | (9.8*40) | 392 | |||||
total cost | 1700 | 1192 | 2892 | ||||
selling price | |||||||
2892*110% | |||||||
3181 | answer | ||||||
Comans Corporation has two production departments, Milling and Customizing. The company uses a job-order costing system...
Comans Corporation has two production departments, Milling and Customizing. The company uses a job-order costing system and computes a predetermined overhead rate in each production department. The Milling Department's predetermined overhead rate is based on machine-hours and the Customizing Department's predetermined overhead rate is based on direct labor-hours. At the beginning of the current year, the company had made the following estimates: Milling 21,000 14,000 $63,000 $ 2.00 Customizing 12,000 5,000 $24,000 Machine-hours Direct labor-hours Total fixed manufacturing overhead cost...
Comans Corporation has two production departments, Milling and Customizing. The company uses a job-order costing system and computes a predetermined overhead rate in each production department. The Milling Department’s predetermined overhead rate is based on machine-hours and the Customizing Department’s predetermined overhead rate is based on direct labor-hours. At the beginning of the current year, the company had made the following estimates: Milling Customizing Machine-hours 18,000 13,000 Direct labor-hours 4,000 7,000 Total fixed manufacturing overhead cost $ 113,400 $ 64,400...
Comans Corporation has two production departments, Milling and Customizing. The company uses a job-order costing system and computes a predetermined overhead rate in each production department. The Milling Department’s predetermined overhead rate is based on machine-hours and the Customizing Department’s predetermined overhead rate is based on direct labor-hours. At the beginning of the current year, the company had made the following estimates: Milling Customizing Machine-hours 26,000 10,000 Direct labor-hours 11,000 8,000 Total fixed manufacturing overhead cost $ 91,000 $ 44,000...
Comans Corporation has two production departments, Milling and Customizing. The company uses a job-order costing system and computes a predetermined overhead rate in each production department. The Milling Department’s predetermined overhead rate is based on machine-hours and the Customizing Department’s predetermined overhead rate is based on direct labor-hours. At the beginning of the current year, the company had made the following estimates: Milling Customizing Machine-hours 20,000 24,000 Direct labor-hours 18,000 8,000 Total fixed manufacturing overhead cost $ 68,000 $ 36,000...
Comans Corporation has two production departments, Milling and Customizing. The company uses a job-order costing system and computes a predetermined overhead rate in each production department. The Milling Department’s predetermined overhead rate is based on machine-hours and the Customizing Department’s predetermined overhead rate is based on direct labor-hours. At the beginning of the current year, the company had made the following estimates: Milling Customizing Machine-hours 28,000 15,000 Direct labor-hours 15,000 9,000 Total fixed manufacturing overhead cost $ 154,000 $ 36,900...
Comans Corporation has two production departments, Milling and Customizing. The company uses a job-order costing system and computes a predetermined overhead rate in each production department. The Milling Department's predetermined overhead rate is based on machine-hours and the Customizing Department's predetermined overhead rate is based on direct labor-hours. At the beginning of the current year, the company had made the following estimates: Machine-hours Direct labor-hours Total fixed manufacturing overhead cost Variable manufacturing overhead per machine-hour Variable manufacturing overhead per direct...
Help Save & Exit Comans Corporation has two production departments, Milling and Customizing. The company uses a job-order costing system and computes a predetermined overhead rate in each production department. The Miling Department's predetermined overhead rate is based on machine-hours and the Customizing Department's predetermined overhead rate is based on direct labor-hours. At the beginning of the current year, the company had made the following estimates: Milling 25,000 15,000 $132,500 $ 1.80 Machine-hours Direct labor-hours Total fixed manufacturing overhead cost...
Comans Corporation has two production departments, Maling and Customing The company uses a job order costing system and computes a predetermined overhead rate in each production department. The Milling Department's predetermined overhead rate is based on machine hours and the Customering Department's predetermined overhead rate is based on direct labor hours. At the beginning of the current year, the company had made the following estimates Machine-hours Direct labor-hours Total fixed manufacturing overhead cost Variable mama actung Overhead per machine- Milling...
Garza Corporation has two production departments, Casting and Customizing. The company uses a job-order costing system and computes a predetermined overhead rate in each production department. The Casting Department’s predetermined overhead rate is based on machine-hours and the Customizing Department’s predetermined overhead rate is based on direct labor-hours. At the beginning of the current year, the company had made the following estimates: Casting Customizing Machine-hours 20,000 13,000 Direct labor-hours 1,000 7,000 Total fixed manufacturing overhead cost $ 152,000 $ 68,600...
Garza Corporation has two production departments, Casting and Customizing. The company uses a job-order costing system and computes a predetermined overhead rate in each production department. The Casting Department’s predetermined overhead rate is based on machine-hours and the Customizing Department’s predetermined overhead rate is based on direct labor-hours. At the beginning of the current year, the company had made the following estimates: Casting Customizing Machine-hours 29,000 10,000 Direct labor-hours 19,000 9,000 Total fixed manufacturing overhead cost $ 118,900 $ 39,600...