Question

Estimated total machine-hours (MHS) Estimated total fixed manufacturing overhead cost Estimated variable manufacturing overhead cost per MH Forming Customizing 6,000 4, een $16,800 $9,200 $ 2.00 $ 4.00 Total 10,000 $26, eee During the period, the company started and completed two jobs--Job C and Job L. Data concerning those two jobs follow: Direct materials Direct labor cost Forming machine-hours Customizing machine-hours Job C Job L $14,700 $ 8,400 $21,600 $ 8,400 2,7ee 3,380 400 3,689

Answer 1

Requirement (a) Fixed manufacturing overhead cost Variable manufacturing overhead cost Total overhead cost Divide by Total machine hours Predetermined overhead rate Forming Customizing Total $ 16,800 $ 9,200 $ 26,000 $ 12,000 $ 16,000 $28,000 $ 28,800 $ 25,200 $ 54,000 10000 $ 5.40 Per Machine Hour Requirement (b) Machine hours Job L - (3300+3600) Predetermined overhead rate Manufacturing overhead applied Amount 6900 $ 5.40 $ 37,260 Requirement (c.) Direct materials Direct labor Manufacturing overhead applied Total Manufacturing cost assigned to Job L Amount $ 8,400 $ 8,400 $ 37,260 $ 54,060 Requirement (d) Manufacturing cost Add: Markup @ 80% Selling price for Job L Amount $ 54,060 $ 43,248 $ 97,308 Requirement (e) Forming department overhead - Requirement (a) Divide by Total machine hours Predetermined overhead rate Amount $ 28,800 6000 $ 4.80 per MH Requirement (1) Customizing department overhead - Requirement (a) Divide by Total machine hours Predetermined overhead rate Amount $ 25,200 40001 $ 6.30 per MH Requirement (9) Forming department overhead applied Customizing department overhead applied Manufacturing overhead applied Job L Amount $ 15,840.00 $ 22,680.00 $ 38,520 Requirement (h) Direct materials Direct labor Manufacturing overhead applied Manufacturing cost Add: Markup @ 80% Selling price for Job L Amount $ 8,400 $ 8,400 $ 38,520 $ 55,320 $ 44,256 $ 99,576 Note : Please comment down for any further clarifications