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Estimated total machine-hours (MHs) 4,000 6,000 10,000
Estimated total fixed manufacturing overhead cost $ 18,000 $
33,000 $ 51,000
Estimated variable manufacturing overhead cost per machine-hour $
3.00 $ 6.00
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 $ 16,000 $ 9,400
Direct labor cost $ 22,700 $ 9,700
Molding machine-hours 1,250 2,750
Assembly machine-hours 1,250 4,750
Required:
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 that 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 80% 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 intermediate calculations.)
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 80% on manufacturing cost to establish selling prices. Calculate the selling
price for Job E. (Do not round intermediate calculations.)