Question

Harnett Corporation has two manufacturing departments --Molding and Assembly. The company used the following data at the beginning of the period to calculate predetermined overhead rates: Estimated total machine-hours (MHS) Estinated total fixed manufacturing overhead cost Estimated variable manufacturing overhead cost per MH Molding 8,000 $32,800 $ 3.ee Assembly 2,eee $9,400 $ 6.00 Total 10,000 $42,200 During the period, the company started and completed two jobs-Job E and Job M. Data cancerning those two jobs follow: Direct materials Direct labor cost Molding machine-hours Assembly machine-hours Job E Job M $21,700 58, 600 $21,800 $ 8,400 1,250 6,750 1,250 75e Required: a. Assume that the company uses a plantwide predetermined manufacturing overhead rate based on machine-hours. Calculate that overhead rate. (Round your answer to 2 decimal places.) b. Assume that the company uses a plantwide predetermined manufacturing overhead rate based on machine-hours. Calculate the amount of manufacturing overhead applied to Job E. (Do not round Intermediate calculations.) C. Assume that the company uses a plantwide predetermined manufacturing overhead rate based on machine-hours. Calculate the total manufacturing cost assigned to Job E. (Do not round Intermediate calculations.) d. Assume that the company uses a plantwide predetermined manufacturing overhead rate based on machine-hours and uses a markup of 20% on manufacturing cost to establish selling prices. Calculate the selling price for Job E. (Do not round Intermediate calculations.) e. Assume that the company uses departmental predetermined overhead rates with machine-hours as the allocation base in both departments. What is the departmental predetermined overhead rate in the Molding department? (Round your answer to 2 decimal places.) 1. Assume that the company uses departmental predetermined overhead rates with machine-hours as the allocation base in both production departments. What is the departmental predetermined overhead rate in the Assembly department? (Round your answer to 2 decimal places.) 9. Assume that the company uses departmental predetermined overhead rates with machine-hours as the allocation base in both production departments. How much manufacturing overhead will be applied to Job E? (Do not round Intermediate calculations.) ----- ----

Answer 1

a
Estimated variable manufacturing overhead	36000	=(8000*3)+(2000*6)
Estimated total fixed manufacturing overhead	42200
Estimated total manufacturing overhead	78200
Divide by Estimated total machine-hours used	10000
Predetermined overhead rate	7.82	per MH
b
Actual machine-hours used	2500	=1250+1250
X Plantwide predetermined overhead rate	7.82
Manufacturing overhead applied	19550
c
Direct materials	21700
Direct labor cost	21800
Manufacturing overhead applied	19550
Manufacturing cost	63050
d
Manufacturing cost	63050
Add: Markup 20%	12610
Selling price	75660
e
Molding Predetermined overhead rate	7.10	=3+(32800/8000)
f
Assembly Predetermined overhead rate	10.70	=6+(9400/2000)
g
Manufacturing overhead applied Job E	22250	=(1250*7.1)+(1250*10.7)
h
Direct materials	21700
Direct labor cost	21800
Manufacturing overhead applied	22250
Manufacturing cost	65750
Add: Markup 20%	13150
Selling price Job E	78900