237) Henkes Corporation bases its predetermined overhead rate on the estimated labor-hours for
the upcoming year. At the beginning of the most recently completed year, the company estimated
the labor-hours for the upcoming year at 66,000 labor-hours. The estimated variable
manufacturing overhead was $8.41 per labor-hour and the estimated total fixed manufacturing
overhead was $1,533,180. The actual labor-hours for the year turned out to be 68,400 labor-
hours.
Required:
Compute the company’s predetermined overhead rate for the recently completed year.
238) Crowson Corporation uses a job-order costing system with a single plantwide
predetermined overhead rate based on machine-hours. The company based its predetermined
overhead rate for the current year on the following data:
Total machine-hours
50,000
Total fixed manufacturing overhead cost
$390,000
Variable manufacturing overhead per machine-hour
$3.60
Required:
Calculate the predetermined overhead rate for the year.
239) Cannizzaro Corporation uses a job-order costing system with a single plantwide
predetermined overhead rate based on machine-hours. The company based its predetermined
overhead rate for the current year on 40,000 machine-hours, total fixed manufacturing overhead
cost of $248,000, and a variable manufacturing overhead rate of $3.80 per machine-hour.
Required:
Calculate the predetermined overhead rate for the year.
240) Quiet Corporation uses a job-order costing system with a single plantwide predetermined
overhead rate based on machine-hours. The company based its predetermined overhead rate for
the current year on 40,000 machine-hours, total fixed manufacturing overhead cost of $152,000,
and a variable manufacturing overhead rate of $3.10 per machine-hour.
Required:
Calculate the estimated total manufacturing overhead for the year.
241) Mccaughan Corporation bases its predetermined overhead rate on the estimated labor-hours
for the upcoming year. Data for the most recently completed year appear below:
Estimates made at the beginning of the year:
Estimated labor-hours
37,000
Estimated variable manufacturing overhead
$
4.43
per labor-hour
Estimated total fixed manufacturing overhead
$
705,220
Actual labor-hours for the year
32,100
Required:
Compute the company’s predetermined overhead rate for the recently completed year.
242) Moscone Corporation bases its predetermined overhead rate on the estimated labor-hours
for the upcoming year. At the beginning of the most recently completed year, the company
estimated the labor-hours for the upcoming year at 78,000 labor-hours. The estimated variable
manufacturing overhead was $9.99 per labor-hour and the estimated total fixed manufacturing
overhead was $985,920.
Required:
Compute the company’s predetermined overhead rate.
243) Lightner Corporation bases its predetermined overhead rate on the estimated machine-hours
for the upcoming year. Data for the upcoming year appear below:
Estimated machine-hours
50,000
Estimated variable manufacturing overhead
$
8.82
per labor-hour
Estimated total fixed manufacturing overhead
$
1,077,000
Required:
Compute the company’s predetermined overhead rate.
244) Florek Corporation uses a job-order costing system with a single plantwide predetermined
overhead rate based on direct labor-hours. The company based its predetermined overhead rate
for the current year on the following data:
Total direct labor-hours
10,000
Total fixed manufacturing overhead cost
$31,000
Variable manufacturing overhead per direct labor-hour
$2.50
Required:
a. Calculate the estimated total manufacturing overhead for the year.
b. Calculate the predetermined overhead rate for the year.
245) Meenach Corporation uses a job-order costing system with a single plantwide
predetermined overhead rate based on direct labor-hours. The company based its predetermined
overhead rate for the current year on 80,000 direct labor-hours, total fixed manufacturing
overhead cost of $160,000, and a variable manufacturing overhead rate of $2.30 per direct labor-
hour. Recently Job X387 was completed and required 120 direct labor-hours.
Required:
Calculate the amount of overhead applied to Job X387.
246) Weakley Corporation uses a predetermined overhead rate that was based on estimated total
fixed manufacturing overhead of $358,000 and 20,000 machine-hours for the period. The
company incurred actual total fixed manufacturing overhead of $382,000 and 18,300 total
machine-hours during the period.
Required:
Determine the amount of manufacturing overhead that would have been applied to all jobs
during the period.
247) Fillmore Corporation uses a job-order costing system with a single plantwide predetermined
overhead rate based on direct labor-hours. The company based its predetermined overhead rate
for the current year on 60,000 direct labor-hours, total fixed manufacturing overhead cost of
$96,000, and a variable manufacturing overhead rate of $3.30 per direct labor-hour. Recently Job
X809 was completed and required 100 direct labor-hours.
Required:
a. Calculate the estimated total manufacturing overhead for the year.
b. Calculate the predetermined overhead rate for the year.
c. Calculate the amount of overhead applied to Job X809.
248) Thrall Corporation uses a job-order costing system with a single plantwide predetermined
overhead rate based on machine-hours. The company based its predetermined overhead rate for
the current year on the following data:
Total machine-hours
10,000
Total fixed manufacturing overhead cost
$50,000
Variable manufacturing overhead per machine-hour
$3.90
Recently Job K125 was completed and required 160 machine-hours.
Required:
Calculate the amount of overhead applied to Job K125.
249) Verry Corporation uses a job-order costing system with a single plantwide predetermined
overhead rate based on direct labor-hours. The company based its predetermined overhead rate
for the current year on the following data:
Total direct labor-hours
60,000
Total fixed manufacturing overhead cost
$342,000
Variable manufacturing overhead per direct labor-
hour
$2.40
Recently Job X711 was completed and required 90 direct labor-hours.
Required:
a. Calculate the estimated total manufacturing overhead for the year.
b. Calculate the predetermined overhead rate for the year.
c. Calculate the amount of overhead applied to Job X711.
250) Trevigne Corporation uses a predetermined overhead rate base on machine-hours that it
recalculates at the beginning of each year. The company has provided the following data for the
most recent year.
Estimated total fixed manufacturing overhead from the
beginning of the year
$114,000
Estimated activity level from the beginning of the year
10,000
machine-hours
Actual total fixed manufacturing overhead
$104,000
Actual activity level
9,400
machine-hours
Required:
Determine the amount of manufacturing overhead that would have been applied to all jobs
during the period.
Estimated total fixed manufacturing overhead (a)
Estimated activity level (b)
Predetermined overhead rate (a) ÷ (b)
Actual activity level
Manufacturing overhead applied
332
251) Luarca Corporation has two manufacturing departments—Casting and Customizing. The
company used the following data at the beginning of the year to calculate predetermined
overhead rates:
Casting
Customizing
Total
Estimated total machine-hours (MHs)
2,000
3,000
5,000
Estimated total fixed manufacturing overhead
cost
$11,600
$7,200
$18,800
Estimated variable manufacturing overhead cost
per MH
$1.90
$2.80
During the most recent month, the company started and completed two jobs—Job F and Job L.
There were no beginning inventories. Data concerning those two jobs follow:
Job F
Job L
Direct materials
$10,600
$6,600
Direct labor cost
$24,400
$8,600
Casting machine-hours
1,400
600
Customizing machine-hours
1,200
1,800
Required:
Assume that the company uses a plantwide predetermined manufacturing overhead rate based on
machine-hours and uses a markup of 50% on manufacturing cost to establish selling prices.
Calculate the selling prices for Job F and Job L.
335
252) Lamberson Corporation uses a job-order costing system with a single plantwide
predetermined overhead rate based on machine-hours. The company based its predetermined
overhead rate for the current year on the following data:
Total machine-hours
50,000
Total fixed manufacturing overhead cost
$460,000
Variable manufacturing overhead per machine-hour
$3.10
Recently Job P647 was completed with the following characteristics:
Number of units in the job
50
Total machine-hours
150
Direct materials
$740
Direct labor cost
$6,000
Required:
a. Calculate the amount of overhead applied to Job P647.
b. Calculate the total job cost for Job P647.
c. Calculate the unit product cost for Job P647.
337
253) Mcewan Corporation uses a job-order costing system with a single plantwide predetermined
overhead rate based on direct labor-hours. The company based its predetermined overhead rate
for the current year on 20,000 direct labor-hours, total fixed manufacturing overhead cost of
$182,000, and a variable manufacturing overhead rate of $2.50 per direct labor-hour. Job X941,
which was for 50 units of a custom product, was recently completed. The job cost sheet for the
job contained the following data:
Total direct labor-hours
250
Direct materials
$740
Direct labor cost
$6,500
Required:
Calculate the selling price for Job X941 if the company marks up its unit product costs by 20%.
254) Teasley Corporation uses a job-order costing system with a single plantwide predetermined
overhead rate based on machine-hours. The company based its predetermined overhead rate for
the current year on 70,000 machine-hours, total fixed manufacturing overhead cost of $630,000,
and a variable manufacturing overhead rate of $3.40 per machine-hour. Job X159 was recently
completed. The job cost sheet for the job contained the following data:
Total machine-hours
200
Direct materials
$670
Direct labor cost
$7,800
Required:
Calculate the total job cost for Job X159.
Direct materials
Direct labor
Manufacturing overhead applied
Total cost of Job X159
255) Alsobrooks Corporation uses a job-order costing system with a single plantwide
predetermined overhead rate based on machine-hours. The company based its predetermined
overhead rate for the current year on the following data: