Copy Paste Alignment Format Painter Font Clipboard 845 1Chapter 2: Applying Ence
ID: 2328057 • Letter: C
Question
Copy Paste Alignment Format Painter Font Clipboard 845 1Chapter 2: Applying Encel Data 4 Makup on ob cost Department Miling Assembly 3,000 80,000 $390,000$500,000 $3 75 60,000 8,000 Drect labor-hours 10 Total fiwed manufacturing overhead cos $2.00 Variable manufactuing ovethead per machine-hour Vanable mandacungoverheadper deect labor-hour Department Miling Assembly 4 Cost summary for Job 407 90 17 Direcr labor-hour 8 Direot materials 19 Deect labor cost 1800 $70 20 370 280 3 Step 1: Calculate the estimated total manufacturing ovethead cost for each department Mling Assembly 25 Total ived mandacturing ovechead cost 26 Vaiable manufacturing overhead per machine-hour or drect labor-hou Total machine-hours or direct labor-hours Toral vaiable manfacturing overhead Torslmatachuring overhead 30 Step 2: Caloulate the predetermined overhead rate in each department 32 Ming Assembly Toralmanudacturing overhead 4 Total machine-hours or drect labor-hours 5 Predeemined overhead rae pe machine-hout or drecelabor-hour Chapter 2 Form ReadyExplanation / Answer
Milling Assembly Machine hr 60000 3000 Direct labor hr 8,000 80000 Total fixed manufacturing OH cost $ 390,000 $ 500,000 Variable manufacturing OH per machine-hr $2 Variable manufacturing OH per labor-hr 3.75 Summary for Job 407 Milling Assembly Machine hr 90 4 Direct labor hr 8 20 Direct material $ 800 $ 370 Direct labor cost $ 70 $ 280 Answer 1) : Total manufacturing OH cost Milling Assembly i Total fixed manufacturing OH cost $ 390,000 $ 500,000 ii Variable manufacturing OH per machine-hr or direct labor hr $2 $ 3.75 iii Total machine hr or direct labor hr 60000 80000 iv=ii*iii Variable manufacturing OH $120,000 $300,000 v=iv+i Total manufacturing OH $510,000 $800,000 Answer 2) : Computation of OH rate Milling Assembly i Total manufacturing OH $510,000 $800,000 ii Total machine hr or direct labor hr 60000 80000 iii=i/ii Predefined OH rate Machine hr or direct labor hr $8.50 $10.00 Answer 3) : Computation of overhead applied from both department to job 407 Milling Assembly i Predefined OH rate Machine hr or direct labor hr $8.50 $10.00 ii Machine hr or direct labor hr for job 90 20 iii=ii*i Manufacturing OH applied $765.00 $200.00 Answer 4) : Computation of total cost of job 407 Milling Assembly Total i Direct material $ 800 $ 370 $ 1,170 ii Direct Labor $ 70 $ 280 $ 350 iii Manufacturing OH applied $ 765 $ 200 $ 965 iv=i+ii+iii Total cost of job 407 $ 1,635 $ 850 $ 2,485 Answer 5) : Computation of selling price of job 407 i Total cost of job 407 2,485.00 ii=i*75% Mark up 1,863.75 iii=i+ii selling price 4,348.75