Mason company uses direct labor-hours as its allocation base to compute its applied manufacturing overhead rate....

 

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Mason company uses direct labor-hours as its allocation base to compute its applied manufacturing overhead rate. The company's estimated fixed manufacturing overhead cost is $1,500,000 and variable manufacturing overhead rate is $12 per direct labor hour, and total labor hours to be used is 10,000. Following tables show additional information about the company - sales $ 2,500,000.00 direct labor cost $ 50,000.00 raw material purchase $ 115,000.00 selling expenses administrative expenses $ 150,000.00 $ 65,000.00 Actual manufacturing overhead cost $ 1,690 000 00 Beginning $10,000 Inventories Ending $15,000 Raw materials Work in process Finished goods $20,000 $4,000 $45,000 $68,000 a) Prepared a schedule of cost of goods manufactured. Assume all raw materials used in production were direct materials. Show the table with each item used in the calculation below. b) Prepare a schedule of cost of goods sold. Assume the company's underapplied or overapplied overhead is closed to Cost of Goods Sold. Show the table with each item used in the calculation below. C) Prepare an income statement and show the table below. D) Suppose Mason company got a job “Job A07" from the company XYZ Corp. They estimated that the job would require $2,000 for direct materials cost, $5,000 for direct labor cost, and 100 labor hours. Calculate the total cost of the job. If Mason decided to charge them 10% less than the cost of doing that job, calculate and show the price of "Job A07."| Mason company uses direct labor-hours as its allocation base to compute its applied manufacturing overhead rate. The company's estimated fixed manufacturing overhead cost is $1,500,000 and variable manufacturing overhead rate is $12 per direct labor hour, and total labor hours to be used is 10,000. Following tables show additional information about the company - sales $ 2,500,000.00 direct labor cost $ 50,000.00 raw material purchase $ 115,000.00 selling expenses administrative expenses $ 150,000.00 $ 65,000.00 Actual manufacturing overhead cost $ 1,690 000 00 Beginning $10,000 Inventories Ending $15,000 Raw materials Work in process Finished goods $20,000 $4,000 $45,000 $68,000 a) Prepared a schedule of cost of goods manufactured. Assume all raw materials used in production were direct materials. Show the table with each item used in the calculation below. b) Prepare a schedule of cost of goods sold. Assume the company's underapplied or overapplied overhead is closed to Cost of Goods Sold. Show the table with each item used in the calculation below. C) Prepare an income statement and show the table below. D) Suppose Mason company got a job “Job A07" from the company XYZ Corp. They estimated that the job would require $2,000 for direct materials cost, $5,000 for direct labor cost, and 100 labor hours. Calculate the total cost of the job. If Mason decided to charge them 10% less than the cost of doing that job, calculate and show the price of "Job A07."|

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Answer Predetermined overhead rate Budgeted Fixed manufacturing overhead per rate Variable manufactu... View the full answer