383
278) Carcana Corporation has two manufacturing departments—Machining and Finishing. The
company used the following data at the beginning of the period to calculate predetermined
overhead rates:
Machining
Finishing
Total
Estimated total machine-hours (MHs)
1,000
4,000
5,000
Estimated total fixed manufacturing overhead
cost
$4,200
$8,800
$13,000
Estimated variable manufacturing overhead
cost per MH
$1.90
$2.90
During the period, the company started and completed two jobs—Job E and Job G. Data
concerning those two jobs follow:
Job E
Job G
Direct materials
$11,800
$8,000
Direct labor cost
$19,200
$6,700
Machining machine-hours
700
300
Finishing machine-hours
1,600
2,400
Required:
a. 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 Machining department?
b. 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 Finishing department?
c. 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?
d. 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 G?
e. 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 80% on manufacturing cost to establish selling prices. Calculate the selling
price for Job E.
f. 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 80% on manufacturing cost to establish selling prices. Calculate the selling
price for Job G.
g. Assume that the company uses departmental predetermined overhead rates with machine-
hours as the allocation base in both production departments. If both jobs were sold during the
month, what was the company’s cost of goods sold for the month?
385
279) Braegelmann 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
20,000
14,000
Direct labor-hours
4,000
6,000
Total fixed manufacturing overhead cost
$110,000
$65,400
Variable manufacturing overhead per machine-hour
$1.60
Variable manufacturing overhead per direct labor-hour
$4.50
During the current month the company started and finished Job K246. The following data were
recorded for this job:
Job K246:
Casting
Assembly
Machine-hours
60
30
Direct labor-hours
20
40
Direct materials
$950
$305
Direct labor cost
$460
$920
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 amount of overhead applied in the Casting Department to Job K246.
f. Calculate the amount of overhead applied in the Assembly Department to Job K246.
g. Calculate the total job cost for Job K246.
h. Calculate the selling price for Job K246 if the company marks up its unit product costs by
40% to determine selling prices.
280) Matrejek Corporation has two manufacturing departments—Forming and Customizing. The
company used the following data at the beginning of the year to calculate predetermined
overhead rates:
Forming
Customizing
Total
Estimated total machine-hours (MHs)
8,000
2,000
10,000
Estimated total fixed manufacturing
overhead cost
$36,800
$4,800
$41,600
Estimated variable manufacturing overhead
cost per MH
$1.60
$2.90
During the most recent month, the company started and completed two jobs—Job D and Job K.
There were no beginning inventories. Data concerning those two jobs follow:
Job D
Job K
Direct materials
$15,600
$6,900
Direct labor cost
$19,100
$8,700
Forming machine-hours
5,400
2,600
Customizing machine-hours
800
1,200
Required:
a. 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 price for Job D.
b. 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 price for Job K.
c. 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 50% on manufacturing cost to establish selling prices. Calculate the selling
price for Job D.
d. 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 50% on manufacturing cost to establish selling prices. Calculate the selling
price for Job K.
Estimated fixed manufacturing overhead
Estimated variable manufacturing overhead ($1.60 per MH ×
8,000 MHs)
Estimated total manufacturing overhead cost
391
392
281) 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:
Molding
Assembly
Total
Estimated total machine-hours (MHs)
5,000
5,000
10,000
Estimated total fixed manufacturing overhead
cost
$29,000
$13,500
$42,500
Estimated variable manufacturing overhead
cost per MH
$1.20
$2.30
During the period, the company started and completed two jobs—Job E and Job M. Data
concerning those two jobs follow:
Job E
Job M
Direct materials
$14,300
$9,400
Direct labor cost
$22,800
$8,900
Molding machine-hours
3,400
1,600
Assembly machine-hours
2,000
3,000
Required:
a. Assume that the company uses a plantwide predetermined manufacturing overhead rate based
on machine-hours. Calculate that overhead rate.
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.
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.
d. Assume that the company uses a plantwide predetermined manufacturing overhead rate based
on machine-hours and uses a markup of 60% on manufacturing cost to establish selling prices.
Calculate the selling price for Job E.
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?
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?
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?
h. 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 60% on manufacturing cost to establish selling prices. Calculate the selling
price for Job E.
395
282) Bulla Corporation has two production departments, Machining and Customizing. The
company uses a job-order costing system and computes a predetermined overhead rate in each
production department. The Machining 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:
Machining
Customizing
Machine-hours
19,000
13,000
Direct labor-hours
2,000
9,000
Total fixed manufacturing overhead cost
$98,800
$84,600
Variable manufacturing overhead per machine-hour
$2.10
Variable manufacturing overhead per direct labor-hour
$3.60
During the current month the company started and finished Job K369. The following data were
recorded for this job:
Job K369:
Machining
Customizing
Machine-hours
90
10
Direct labor-hours
20
50
Required:
Calculate the total amount of overhead applied to Job K369 in both departments.
