Landen Corporation uses a job-order costing system. At the beginning of the year, the company made...

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Landen Corporation uses a job-order costing system. At the beginning of the year, the company made the following estimates: D

L. Assume that Landen nas nistoncany usea a pianiwide predetermined overneau rate with direct labor-nours as the allocauon oa

Speedy Auto Repairs uses a job-order costing system. The companys direct materials consist of replacement parts installed in

Check my Direct materials Direct labor cost Direct labor-hours used $622 $229 6 Compute Mr. Wilkes total job cost. 3. If Spe

3. If Speedy establishes its selling prices using a markup percentage of 60% of its total job Mr. Wilkes? Complete the questi

Direct materials Direct labor cost Direct Labor-hours used $622 $229 6 Compute Mr. Wilkes total job cost. 3. If Speedy estab

Check my work maken McCullough Hospital uses a job-order costing system to assign costs to its patients. Its direct materials

Required: 1. Assuming McCullough calculates two overhead rates as recommended by the staff accountant, calculate: a. The ICU

business accounting

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Answer 1

Answer #1

1. a. Plantwide predetermined overhead rate: $ 5.40 per direct labor hour

Plantwide predetermined overhead rate = ( Total Fixed Manufacturing Overhead + Total Variable Manufacturing Overhead ) / Direct Labor Hours = ( $ 266,000 + 95,000 DLH x $ 2.60 ) / 95,000 DLH = $ 5.40 per direct labor hour

b. Total manufacturing cost of Job 550: $ 591

Direct materials cost	$ 273
Direct labor cost	237
Manufacturing overhead ( 15 DLH x $ 5.40)	81
Total manufacturing costs for Job 550	$ 591

c. Selling price for Job 550: $ 1,773

Total manufacturing cost for Job 550	$ 591
Markup ( 591 x 200 % )	1,182
Selling price for Job 550	$ 1,773

2. a. Plantwide predetermined overhead rate : $ 10.80 per machine hour

Plantwide predetermined overhead rate = ( $ 266,000 + 47,500 MH x $ 5.20 ) / 47,500 MH = $ 10.80 per MH

b. Total manufacturing cost for Job 550: $ 564

Direct materials cost	$ 273
Direct labor cost	237
Manufacturing overhead ( 5 MH x $ 10.80 )	54
Total manufacturing ost for Job 550	$ 564

c. Selling pricefor Job 550: $ 1,692

Total manufacturing cost for Job 550	$ 564
Markup ( $ 564 x 200 % )	1,128
Selling price for Job 550	$ 1,692

Speedy Auto Repairs:

1. Predetermined overhead rate = ( $ 168,000 + 16,000 DLH x $ 1.00 ) / 16,000 DLH = $ 11.50

2. Mr. Wilkes' total job cost :$ 920

Direct materials	$ 622
Direct labor	229
Overhead ( 6 DLH x $ 11.50)	69
Total job cost	$ 920

3. Amount charged to Mr. Wilkes = $ 920 x 1.60 = $ 1,472

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Answer 2

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