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Harnett Corporation has two manufecturing departments-Molding and Assembly. The company used the following dato at the beginning of the period to calculate predetermined overheed rates: 9,000 $ 45,900 7,600 후 53,500 1.503.00 1,000 10,000 Estinated total fixed manufacturing overhead cost During the period, the company started and completed two jobs-Job E and Job M. Data concerning those two jobs follow. $21,800 $9,000 22,100 $8,500 2,500 6,500 500 500 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 thet 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.) f. 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.) g. 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 in h. Assume that the company uses departmental predetermined overhead rates with machine-hours as the a production de Calculate the selling price for Job E. (Do not round intermediate calculations.) ediate calculations.) base in both ts. Further assume that the company uses a markup of 20% on manufacturing cost to establish selling prices. per MH a. iead Patès with machine-hours as the allocation base in ba CION 00artments. How much manufacturing overhead will be applied to Job E? (Do not round intermediate calculations h. Assume that the company uses departmental predetermined overhead rates with machine-hours as the allocation base in ba production departments. Further assume that the company uses a markup of 20% on manufacturing cost to establish selling pri Calculate the selling price for Job E.(Do not round intermediate calculations.) per MH ined overhead rate b. Manufa c. Manufacturing cost d. Selling price rate e. Molding per MH overhead rate per MH g. Manufacturing h. Selling price for jobE applied job E has two 5,100 39,200 44,300 two jobs-Job 8 and Job K. There were no beginning 4,000 2,000 1,000 4,000 Round you answer to 2 decimal places.j Calculate the to Job B. (Do not round (Do not round intermediate caluetions amount of Do not round your answer to the nearest Round your answer to 2 answer to as the allocation base in both Round your anower to 2 decimal placesJ points amount of Do not round intermediate caleuaions applied to Job B. (Do round overhead applied to Job K. (Do not round amount of whole dollar a d. overhead rate in the Finishing department? (Round your ฮnswer to 2 decimal places) as the allocation base in both overhead will be applled to Job B? (Do not round

Answer 1

Solution

a.

Predetermined overhead rate:

=( estimated fixed manufacturing overhead+estimated variable manufacturing overhead) / estimated total machine hours

= [$53,500+(9000*1.50+1000*3.00) /10000 hours

=($53500+$16500) /10000

=$7 per machine hour

b.

Manufacturing overhead applied to job E:

=predetermined overhead rate ×Machine hours used by the job

=$ 7 ×(2500+500 ) machine hours

=$21,000

c.

Total manufacturing cost assigned to job E:

= direct material+direct labor+ manufacturing overhead applied

=$21000+$22100+$21000

=$64100

d.

Selling price for job E:

=total manufacturing cost× 1.40

=$64100×1.40

=$89,740