Question
In: Accounting
Bierce Corporation has two manufacturing departments--Machining and Finishing. The company used the following data at the...
Bierce Corporation has two manufacturing departments--Machining and Finishing. The company used the following data at the beginning of the year to calculate predetermined overhead rates:
| Machining | Finishing | Total | ||||
| Estimated total machine-hours (MHs) | 4,000 | 6,000 | 10,000 | |||
| Estimated total fixed manufacturing overhead cost | $ | 10,000 | $ | 33,000 | $ | 43,000 |
| Estimated variable manufacturing overhead cost per MH | $ | 2.80 | $ | 6.00 | ||
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:
| Job B | Job K | |||||
| Direct materials | $ | 16,000 | $ | 8,200 | ||
| Direct labor cost | $ | 22,600 | $ | 2,700 | ||
| Machining machine-hours |
2,700 | 1,300 | ||||
| Finishing machine-hours | 600 | 5,400 | ||||
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 B. (Do not round intermediate 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 intermediate 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 decimal 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.)
f. 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.)
Solutions
Expert Solution
| a | predetermined overhead rate | 9.02 | per MH | ||||||
| b | Manufacturing overhead applied to Job B | 29766 | (2700+600)*9.02 | ||||||
| c | Manufacturing overhead applied to Job K | 60434 | (1300+5400)*9.02 | ||||||
| d | Machining predetermined overhead rate | 5.3 | per MH | ||||||
| e | Finishing predetermined overhead rate | 11.5 | per MH | ||||||
| f | Manufacturing overhead applied to B | 21210 | (2700*5.3+600*11.5) | ||||||
| g | Manufacturing overhead applied to K | 68990 | (1300*5.3+5400*11.5) | ||||||
| Working notes | |||||||||
| fixed manufacturing cost per machine hr | 4.3 | ||||||||
| variable MOH | (4000*2.8+6000*6)/10000 | 4.72 | |||||||
| predetermined overhead rate | 9.02 | ||||||||
| machining predetermined overhead rate | |||||||||
| fixed manufacturing cost per machine hr | 2.5 | ||||||||
| variable MOH | 2.8 | ||||||||
| predetermined overhead rate | 5.3 | ||||||||
| Finishing predetermined overhead rate | |||||||||
| fixed manufacturing cost per machine hr | 5.5 | ||||||||
| variable MOH | 6 | ||||||||
| predetermined overhead rate | 11.5 | ||||||||
ekkarill92 answered 3 weeks agoRelated Solutions
Bierce Corporation has two manufacturing departments--Machining and Finishing. The company used the following data at the...
Bierce Corporation has two manufacturing departments--Machining
and Finishing. The company used the following data at the beginning
of the year to calculate predetermined overhead rates:
Machining
Finishing
Total
Estimated total machine-hours (MHs)
8,000
2,000
10,000
Estimated total fixed manufacturing overhead cost
$
16,000
$
9,400
$
25,400
Estimated variable manufacturing overhead cost per MH
$
3.00
$
6.00
During the most recent month, the company started and completed
two jobs--Job B and Job K. There were no beginning inventories.
Data...
Bierce Corporation has two manufacturing departments--Machining and Finishing. The company used the following data at the...
Bierce Corporation has two manufacturing departments--Machining
and Finishing. The company used the following data at the beginning
of the year to calculate predetermined overhead rates:
Machining
Finishing
Total
Estimated total machine-hours (MHs)
8,000
2,000
10,000
Estimated total fixed manufacturing overhead cost
$
16,000
$
9,400
$
25,400
Estimated variable manufacturing overhead cost per MH
$
3.00
$
6.00
During the most recent month, the company started and completed
two jobs--Job B and Job K. There were no beginning inventories.
Data...
Bierce Corporation has two manufacturing departments--Machining and Finishing. The company used the following data at the...
Bierce Corporation has two manufacturing departments--Machining
and Finishing. The company used the following data at the beginning
of the year to calculate predetermined overhead rates:
Machining
Finishing
Total
Estimated total machine-hours (MHs)
8,000
8,000
16,000
Estimated total fixed manufacturing overhead cost
$
4,400
$
39,200
$
43,600
Estimated variable manufacturing overhead cost per MH
$
2.60
$
3.00
During the most recent month, the company started and completed
two jobs--Job B and Job K. There were no beginning inventories.
Data...
Bierce Corporation has two manufacturing departments--Machining and Finishing. The company used the following data at the...
Bierce Corporation has two manufacturing departments--Machining
and Finishing. The company used the following data at the beginning
of the year to calculate predetermined overhead rates:
Machining
Finishing
Total
Estimated total machine-hours (MHs)
6,000
4,000
10,000
Estimated total fixed manufacturing overhead cost
$
10,200
$
24,400
$
34,600
Estimated variable manufacturing overhead cost per MH
$
2.30
$
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...
Bierce Corporation has two manufacturing departments--Machining and Finishing. The company used the following data at the...
Bierce Corporation has two manufacturing departments--Machining
and Finishing. The company used the following data at the beginning
of the year to calculate predetermined overhead rates:
Machining
Finishing
Total
Estimated total machine-hours (MHs)
4,000
6,000
10,000
Estimated total fixed manufacturing overhead cost
$
4,000
$
42,000
$
46,000
Estimated variable manufacturing overhead cost per MH
$
2.20
$
6.00
During the most recent month, the company started and completed
two jobs--Job B and Job K. There were no beginning inventories.
Data...
Bierce Corporation has two manufacturing departments--Machining and Finishing. The company used the following data at the...
Bierce Corporation has two manufacturing departments--Machining
and Finishing. The company used the following data at the beginning
of the year to calculate predetermined overhead rates:
Machining
Finishing
Total
Estimated total machine-hours (MHs)
9,000
8,000
17,000
Estimated total fixed manufacturing overhead cost
$
18,000
$
7,800
$
25,800
Estimated variable manufacturing overhead cost per MH
$
2.70
$
5.00
During the most recent month, the company started and completed
two jobs--Job B and Job K. There were no beginning inventories.
Data...
Bierce Corporation has two manufacturing departments--Machining and Finishing. The company used the following data at the...
Bierce Corporation has two manufacturing departments--Machining
and Finishing. The company used the following data at the beginning
of the year to calculate predetermined overhead rates:
Machining
Finishing
Total
Estimated total
machine-hours (MHs)
4,000
6,000
10,000
Estimated total
fixed manufacturing overhead cost
$
5,200
$
20,400
$
25,600
Estimated variable
manufacturing overhead cost per MH
$
1.50
$
6.00
During the most recent month, the company started and completed
two jobs--Job B and Job K. There were no beginning inventories.
Data...
Bierce Corporation has two manufacturing departments--Machining and Finishing. The company used the following data at the...
Bierce Corporation has two manufacturing departments--Machining
and Finishing. The company used the following data at the beginning
of the year to calculate predetermined overhead rates:
Machining
Finishing
Total
Estimated total machine-hours (MHs)
7,000
3,000
10,000
Estimated total fixed manufacturing overhead cost
$
12,600
$
18,600
$
31,200
Estimated variable manufacturing overhead cost per MH
$
1.70
$
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...
Bierce Corporation has two manufacturing departments--Machining and Finishing. The company used the following data at the...
Bierce Corporation has two manufacturing departments--Machining
and Finishing. The company used the following data at the beginning
of the year to calculate predetermined overhead rates: Machining
Finishing Total Estimated total machine-hours (MHs) 5,000 5,000
10,000 Estimated total fixed manufacturing overhead cost $ 12,000 $
29,000 $ 41,000 Estimated variable manufacturing overhead cost per
MH $ 2.90 $ 3.00 During the most recent month, the company started
and completed two jobs--Job B and Job K. There were no beginning
inventories. Data...
Sanderlin Corporation has two manufacturing departments--Machining and Finishing. The company used the following data at the...
Sanderlin Corporation has two manufacturing
departments--Machining and Finishing. The company used the
following data at the beginning of the year to calculate
predetermined overhead rates:
Machining
Finishing
Total
Estimated total machine-hours (MHs)
5,000
5,000
10,000
Estimated total fixed manufacturing overhead cost
$
26,500
$
13,500
$
40,000
Estimated variable manufacturing overhead cost per MH
$
2.00
$
3.00
During the most recent month, the company started and completed
two jobs--Job C and Job L. There were no beginning inventories.
Data...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Singh Development Co. is deciding whether to proceed with Project X. The cost would be $12...
- CS2123 Data Structures - Fall 2019 Assignment 1: Function Runtimes Table Due 9/11/19 by 11:59pm Completing...
- Question 2. Design a 16-1 MUX using any number of lower MUXs, such as 8-1 or...
- . Write a function that takes, as arguments, two objects, value1 and value2. If
- Wii Brothers, a game manufacturer, has a new idea for an adventure game. It can market...
- Consider the distillation of ethanol (C2H5OH) and the combustion of ethanol . Use a bullet point...
- 1.How does Economic exposure to exchange rate movements affect the capital budgeting of a firm? Provide...
ADVERTISEMENT