361
267) Leeds 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
$215,000
Variable manufacturing overhead per machine-hour
$3.80
Recently Job T496 was completed with the following characteristics:
Number of units in the job
80
Total machine-hours
240
Direct materials
$735
Direct labor cost
$8,880
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 T496.
d. Calculate the total job cost for Job T496.
e. Calculate the unit product cost for Job T496.
363
268) Petru 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
70,000
Total fixed manufacturing overhead cost
$525,000
Variable manufacturing overhead per machine-hour
$2.30
Recently Job P987 was completed with the following characteristics:
Number of units in the job
20
Total machine-hours
80
Direct materials
$630
Direct labor cost
$2,080
Required:
Calculate the unit product cost for Job P987.
269) Franta 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 70,000 direct labor-hours, total fixed manufacturing overhead cost of
$238,000, and a variable manufacturing overhead rate of $2.70 per direct labor-hour. Job P873,
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
200
Direct materials
$630
Direct labor cost
$4,800
Required:
Calculate the unit product cost for Job P873.
Direct materials
Direct labor
Manufacturing overhead applied
Total cost of Job P873
Total cost of Job P873 (a)
Number of units (b)
Unit product cost (a) ÷ (b)
366
270) Temby 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 10,000 machine-hours, total fixed manufacturing overhead cost of $88,000,
and a variable manufacturing overhead rate of $3.20 per machine-hour. Job K418, which was for
50 units of a custom product, was recently completed. The job cost sheet for the job contained
the following data:
Total machine-hours
150
Direct materials
$580
Direct labor cost
$3,900
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 K418.
d. Calculate the total job cost for Job K418.
e. Calculate the unit product cost for Job K418.
f. Calculate the selling price for Job K418 if the company marks up its unit product costs by
30%.
368
271) Saxon 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 10,000 machine-hours, total fixed manufacturing overhead cost of $91,000,
and a variable manufacturing overhead rate of $2.40 per machine-hour. Job K373, which was for
60 units of a custom product, was recently completed. The job cost sheet for the job contained
the following data:
Total machine-hours
120
Direct materials
$645
Direct labor cost
$3,720
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 K373.
d. Calculate the total job cost for Job K373.
e. Calculate the unit product cost for Job K373.
369
272) Kluth Corporation has two manufacturing departments—Molding and Customizing. The
company used the following data at the beginning of the year to calculate predetermined
overhead rates:
Molding
Customizing
Total
Estimated total machine-hours (MHs)
3,000
2,000
5,000
Estimated total fixed manufacturing overhead
cost
$15,900
$4,200
$20,100
Estimated variable manufacturing overhead
cost per MH
$1.20
$2.40
During the most recent month, the company started and completed two jobs—Job C and Job M.
There were no beginning inventories. Data concerning those two jobs follow:
Job C
Job M
Direct materials
$15,600
$8,600
Direct labor cost
$25,100
$8,300
Molding machine-hours
2,000
1,000
Customizing machine-hours
800
1,200
Required:
Assume that the company uses departmental predetermined overhead rates with machine-hours
as the allocation base in both production departments. Further assume that the company uses a
markup of 20% on manufacturing cost to establish selling prices. Calculate the selling prices for
Job C and for Job M.
Estimated fixed manufacturing overhead
Estimated variable manufacturing overhead ($1.20 per
MH × 3,000 MHs)
3,600
Estimated total manufacturing overhead cost (a)
Estimated total machine-hours (b)
3,000
Departmental predetermined overhead rate (a) ÷ (b)
$6.50
Estimated fixed manufacturing overhead
Estimated variable manufacturing overhead ($2.40 per
MH × 2,000 MHs)
4,800
Estimated total manufacturing overhead cost (a)
Estimated total machine-hours (b)
2,000
Departmental predetermined overhead rate (a) ÷ (b)
$4.50
273) Amason Corporation has two production departments, Forming and Assembly. The
company uses a job-order costing system and computes a predetermined overhead rate in each
production department. The Forming Department’s predetermined overhead rate is based on
machine-hours and the Assembly Department’s predetermined overhead rate is based on direct
labor-hours. At the beginning of the current year, the company had made the following
estimates:
Forming
Assembly
Machine-hours
16,000
11,000
Direct labor-hours
2,000
6,000
Total fixed manufacturing overhead cost
$102,400
$66,000
Variable manufacturing overhead per machine-hour
$1.90
Variable manufacturing overhead per direct labor-hour
$3.80
During the current month the company started and finished Job A950. The following data were
recorded for this job:
Job A950:
Forming
Assembly
Machine-hours
50
20
Direct labor-hours
20
40
Direct materials
$665
$415
Direct labor cost
$520
$1,040
Required:
Calculate the selling price for Job A950 if the company marks up its unit product costs by 30%
to determine selling prices.
274) Dancel Corporation has two production departments, Milling and Finishing. The company
uses a job-order costing system and computes a predetermined overhead rate in each production
department. The Milling Department’s predetermined overhead rate is based on machine-hours
and the Finishing Department’s predetermined overhead rate is based on direct labor-hours. At
the beginning of the current year, the company had made the following estimates:
Milling
Finishing
Machine-hours
17,000
14,000
Direct labor-hours
1,000
6,000
Total fixed manufacturing overhead cost
$91,800
$64,200
Variable manufacturing overhead per machine-hour
$2.00
Variable manufacturing overhead per direct labor-hour
$3.40
During the current month the company started and finished Job M565. The following data were
recorded for this job:
Job M565:
Milling
Finishing
Machine-hours
70
20
Direct labor-hours
10
40
Direct materials
$750
$360
Direct labor cost
$340
$1,360
Required:
a. Calculate the total amount of overhead applied to Job M565 in both departments.
b. Calculate the total job cost for Job M565.
c. Calculate the selling price for Job M565 if the company marks up its unit product costs by
20% to determine selling prices.
376
275) Pangle Corporation has two production departments, Forming and Customizing. The
company uses a job-order costing system and computes a predetermined overhead rate in each
production department. The Forming Department’s predetermined overhead rate is based on
machine-hours and the Customizing Department’s predetermined overhead rate is based on direct
labor-hours. At the beginning of the current year, the company had made the following
estimates:
Forming
Customizing
Machine-hours
16,000
12,000
Direct labor-hours
4,000
9,000
Total fixed manufacturing overhead cost
$91,200
$99,000
Variable manufacturing overhead per machine-hour
$2.10
Variable manufacturing overhead per direct labor-hour
$3.10
During the current month the company started and finished Job M109. The following data were
recorded for this job:
Job M109:
Forming
Customizing
Machine-hours
50
30
Direct labor-hours
20
50
Direct materials
$915
$355
Direct labor cost
$620
$1,550
Required:
Calculate the total job cost for Job M109.
276) Vasilopoulos Corporation has two production departments, Casting and Assembly. The
company uses a job-order costing system and computes a predetermined overhead rate in each
production department. The Casting Department’s predetermined overhead rate is based on
machine-hours and the Assembly Department’s predetermined overhead rate is based on direct
labor-hours. At the beginning of the current year, the company had made the following
estimates:
Casting
Assembly
Machine-hours
17,000
11,000
Direct labor-hours
3,000
6,000
Total fixed manufacturing overhead cost
$119,000
$51,000
Variable manufacturing overhead per machine-hour
$2.10
Variable manufacturing overhead per direct labor-hour
$3.10
During the current month the company started and finished Job A182. The following data were
recorded for this job:
Job A182:
Casting
Assembly
Machine-hours
50
20
Direct labor-hours
10
50
Direct materials
$895
$365
Direct labor cost
$240
$1,200
Required:
a. Calculate the estimated total manufacturing overhead for the Casting Department.
b. Calculate the estimated total manufacturing overhead for the Assembly Department.
c. Calculate the predetermined overhead rate for the Casting Department.
d. Calculate the predetermined overhead rate for the Assembly Department.
e. Calculate the total amount of overhead applied to Job A182 in both departments.
f. Calculate the total job cost for Job A182.
g. Calculate the selling price for Job A182 if the company marks up its unit product costs by
20% to determine selling prices.
277) Hultquist Corporation has two manufacturing departments—Forming and Customizing. The
company used the following data at the beginning of the period to calculate predetermined
overhead rates:
Forming
Customizing
Total
Estimated total machine-hours (MHs)
9,000
1,000
10,000
Estimated total fixed manufacturing overhead
cost
$50,400
$2,600
$53,000
Estimated variable manufacturing overhead
cost per MH
$1.70
$2.10
During the period, the company started and completed two jobs—Job C and Job L. Data
concerning those two jobs follow:
Job C
Job L
Direct materials
$15,100
$6,900
Direct labor cost
$20,800
$8,500
Forming machine-hours
6,100
2,900
Customizing machine-hours
400
600
Required: