Question

Bierce Corporation has two manufacturing departments--Machining and Finishing. The company used the following data at the beginning of the year to calculate predetermined overhead rates: Estimated total machine-hours (MHS) Estimated total fixed manufacturing overhead cost Estimated variable manufacturing overhead cost per MH Machining 2,000 $ 2,400 $ 2.10 Finishing 8,000 $ 64,000 $ 6.00 Total 10,000 $ 66,400

Answer 1

Part a
	Total Estimated Fixed manufacturing overhead cost	$                                66,400
	Total Estimated Variable manufacturing overhead cost[(2000*$2.10)+(8000*$6.00)]	$                                52,200
	Total Estimated Manufacturing Overhead Cost	$                              118,600
	Total Estimated Machine hrs	10000	hours
	Plantwide manufacturing overhead rate	$                                  11.86	per machine hrs
Part b	Manufacturing Overhead applied to Job B[(1300+600)*$11.86]	$                                22,534
Part c	Manufacturing Overhead applied to Job K[(700+7400)*$11.86]	$                                96,066
Part d
	Estimated Fixed manufacturing overhead cost at Machining department	$                                  2,400
	Estimated Variable manufacturing overhead cost at Machining department(2000*$2.10)	$                                  4,200
	Total Estimated Manufacturing Overhead Cost at Machining department	$                                  6,600
	Total Estimated Machine hrs at Machining department	2000	hours
	Plantwide manufacturing overhead rate at Machining department	$                                    3.30	per machine hrs
Part e
	Estimated Fixed manufacturing overhead cost at Finishing department	$                                64,000
	Estimated Variable manufacturing overhead cost at Finishing department(8000*$6.00)	$                                48,000
	Total Estimated Manufacturing Overhead Cost at Finishing department	$                              112,000
	Total Estimated Machine hrs at Finishing department	8000	hours
	Plantwide manufacturing overhead rate at Finishing department	$                                  14.00	per machine hrs
Part f	Manufacturing Overhead applied to Job B[(1300*$3.30)+(600*$14)]	$                                12,690
Part g	Manufacturing Overhead applied to Job K[(700*$3.30)+(7400*$14)]	$                              105,910