Mansfield, Inc., has two production departments, Assembly and Packaging. The com

Question

Mansfield, Inc., has two production departments, Assembly and Packaging. The company uses a job-order costing system and computes a predetermined overhead rate in each production department. The predetermined overhead rate in the Assembly Department is based on machine hours (MHs) and it is based on direct labor-hours (DLHs) in the Packaging Department. At the beginning of the year, the company made the following estimates Packaging Assembly 5,200 68, 400 Direct labor-hours Machine-hours Total fixed manufacturing overhead cost Variable manufacturing overhead per DLH Variable manufacturing overhead per MH 62,000 11,900 $419,000 $ 3.75 $390,000 $ 3.00 Knowledge Check 01 What is the estimated total manufacturing overhead in the Assembly Department? O $595,20o O $651,600 $809.000 $1,246,700 Knowledge Check 02 What is the predetermined overhead rate for the Packing Department? O$8.70 per DLH O$9.61 per DLH O$10.51 per DLH O$18.28 per DLH

Explanation / Answer

Req 1. Answer is $ 595200 Explanation: Total Fixed Manufacturing Overheads 390000 Total Variable Manufacturing Overheads 205200 (68400 MH @ 3.00 per MH) Total Estimated Manufacturing Overheads 595200 Req 2. Answer is 10.51 per DLH Explanation: Variable Manufacturing Overheads 3.75 Fixed manufacturin g Overheads per DLH 6.76 (419000/62000) Pre-determined Oh rate per DLH 10.51

Related Questions

Navigate

• Browse (All)
• Browse M
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.