Blerce Corporation has two manufacturing depertments-Machining and Finishing. Th
ID: 2334214 • Letter: B
Question
Blerce Corporation has two manufacturing depertments-Machining and Finishing. The company used the following data at the beginning of the year to calculate predetermined overhead rates: Estimated total machine-hours (R Estimated total fixed manufacturing overhend cost Estimated variable manufacturing overhead cont per N 5,000 10, 000 s 6,50029,500 36,000 5,000 2.00 4.00 During the most recent month, the company started and completed two Jobs-Job B and Job K. There were no beginning inventories. Data concerning those two Jobs follow Direet materials 16,200 $8,400 Direct labor cost22,700 $2,500 Nachining machine-houre Piniahing machine-hours ,000 1,000 1,000 4,000 Required: a. Assume thet the company uses a plantwide predetermined manufacturing overhead rate besed 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 B. (Do not round Intermedlate calculations.) C. Assume that the company uses a plantwide predetermined manufacturing overhead rate based on machine-hours. Calculate the amount of manufacturing overhead applied to Job K. (Do not round Intermedlate calculations. Round your answer to the nearest whole dollar amount.) d. 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? (Round your answer to 2 declmal places.) e. 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? (Round your answer to 2 decimal places.) t 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 B? (Do not round intermediate calculations.) 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 k?. (Do not round intermediate calculations.) per MH Manufacturing overhead applied Job K d Machining predetermined overhead rate per MH per MH Finishing predetermined overhead rateExplanation / Answer
Answer to Part a.
Predetermined Overhead Rate = Estimated Manufacturing Overhead / Estimated Machine Hour
Estimated Manufacturing Overhead = Fixed Manufacturing Overhead + Variable Manufacturing Overhead
Plantwide Variable Manufacturing Overhead = (5,000*$2) + (5,000*$4) = $30,000
Plantwide Total Manufacturing Overhead = $36,000 + $30,000
Plantwide Total Manufacturing Overhead = $66,000
Plantwide Predetermined Overhead Rate = 66,000/10,000
Plantwide Predetermined Overhead Rate = $6.60 per MH
Answer to Part b.
Manufacturing Overhead applied to Job B = Machine Hour applied * Plantwide Manufacturing Overhead Rate
Machine hours applied = Machine hours applied in Machining + Machine hours applied in Finishing
Machine hour applied to Job B = 4,000 + 1,000= 5,000 MH
Manufacturing Overhead applied to Job B = 5,000 * $6.60
Manufacturing Overhead applied to Job B = $33,000
Answer to Part c.
Manufacturing Overhead applied to Job K = Machine hour applied * Plantwide Predetermined Overhead Rate
Manufacturing Overhead applied = Machine hour applied in Machining + Machine hour applied in Finishing
Machine hour applied to Job K = 1,000 + 4,000
Machine hour applied to Job K = 5,000 MH
Manufacturing Overhead applied to Job K = 5,000 MH * $6.60
Manufacturing Overhead applied to Job K = $33,000
Answer to Part d.
Machining Predetermined Overhead Rate = Estimated Manufacturing Overhead / Estimated Machine hours
Estimated Manufacturing Overhead = $6,500 + (5,000*$2)
Estimated Manufacturing Overhead = $16,500
Machining Predetermined Overhead Rate = 16,500/5,000
Machining Predetermined Overhead Rate = $3.30 per MH
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