Landen Corporation uses a job-order costing system. At the beginning of the year, the company made...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Landen Corporation uses a job-order costing system. At the beginning of the year, the company made the following estimates: Direct labor-hours required to support estimated production Machine-hours required to support estimated production Fixed manufacturing overhead cost. Variable manufacturing overhead cost per direct labor-hour Variable manufacturing overhead cost per machine-hour During the year, Job 550 was started and completed. The following information is available with respect to this job: Direct materials. Direct labor cost. Direct labor-hours Machine-hours. $183 $ 295 15 145,000 72,500 $ 406,000 $4.40 $ 8.80 5 Required: 1. Assume that Landen has historically used a plantwide predetermined overhead rate with direct labor-hours as the allocation base. Under this approach: a. Compute the plantwide predetermined overhead rate. b. Compute the total manufacturing cost of Job 550. c. If Landen uses a markup percentage of 200% of its total manufacturing cost, what selling price would it establish for Job 550? 2. Assume that Landen's controller believes that machine-hours is a better allocation base than direct labor-hours. Under this approach: a. Compute the plantwide predetermined overhead rate. b. Compute the total manufacturing cost of Job 550. c. If Landen uses a markup percentage of 200% of its total manufacturing cost, what selling price would it establish for Job 550? (Round your intermediate calculations to 2 decimal places. Round your Predetermined Overhead Rate answers to 2 decimal places and all other answers to the nearest whole dollar.) 1. Direct labor-hours: 1a. Predetermined overhead rate 1b. Total manufacturing cost of Job 550 1c. Selling price 2. Machine-hours: 2a. Predetermined overhead rate 2b. Total manufacturing cost of Job 550 2c. Selling price per DLH per MH Landen Corporation uses a job-order costing system. At the beginning of the year, the company made the following estimates: Direct labor-hours required to support estimated production Machine-hours required to support estimated production Fixed manufacturing overhead cost. Variable manufacturing overhead cost per direct labor-hour Variable manufacturing overhead cost per machine-hour During the year, Job 550 was started and completed. The following information is available with respect to this job: Direct materials. Direct labor cost. Direct labor-hours Machine-hours. $183 $ 295 15 145,000 72,500 $ 406,000 $4.40 $ 8.80 5 Required: 1. Assume that Landen has historically used a plantwide predetermined overhead rate with direct labor-hours as the allocation base. Under this approach: a. Compute the plantwide predetermined overhead rate. b. Compute the total manufacturing cost of Job 550. c. If Landen uses a markup percentage of 200% of its total manufacturing cost, what selling price would it establish for Job 550? 2. Assume that Landen's controller believes that machine-hours is a better allocation base than direct labor-hours. Under this approach: a. Compute the plantwide predetermined overhead rate. b. Compute the total manufacturing cost of Job 550. c. If Landen uses a markup percentage of 200% of its total manufacturing cost, what selling price would it establish for Job 550? (Round your intermediate calculations to 2 decimal places. Round your Predetermined Overhead Rate answers to 2 decimal places and all other answers to the nearest whole dollar.) 1. Direct labor-hours: 1a. Predetermined overhead rate 1b. Total manufacturing cost of Job 550 1c. Selling price 2. Machine-hours: 2a. Predetermined overhead rate 2b. Total manufacturing cost of Job 550 2c. Selling price per DLH per MH
Expert Answer:
Related Book For
Managerial Accounting
ISBN: 978-1259307416
16th edition
Authors: Ray Garrison, Eric Noreen, Peter Brewer
Posted Date:
Students also viewed these accounting questions
-
Landen Corporation uses a job-order costing system. At the beginning of the year, the company made the following estimates: Direct labor-hours required to support estimated production . . . . . . . ....
-
Landen Corporation uses a job-order costing system. At the beginning of the year, the company made the following estimates: Direct labor-hours required to support estimated production 125,000...
-
Landen Corporation uses a job-order costing system. At the beginning of the year, the company made the following estimates: Direct labor-hours required to support estimated production 150,000...
-
Make use of table 1.4 to express the following quantities in BG units: (a) 14.2 km, (b) 8.14 N/m 3 , (c) 1.61 kg/m 3 , (d) 0.0320 N m/s (e) 5.67 mm/hr.
-
How could/would dividends affect an EPS/EBIT analysis? Would it be correct to refer to earnings after taxes, interest, and dividends as retained earnings for a given year?
-
What is the basic difference between SRAM and DRAM?
-
Summarize the role and importance of urbanization in the world and how some cities change culture.
-
Today is September 16, Year 2. You, CPA, work for Garcia & Garcia LLP, a medium-sized firm located in Montreal. Jules Garcia calls you into his office. "CPA, I have a very special engagement for you....
-
The function f(x) = 2x - x2 is given graphed below: Note: Click on graph for larger version in new browser window. (A) Starting with the formula for f(x), find a formula for g(x), which is graphed...
-
What are the implications of the statement made by the head of operations that Today, apparel is produced just about everywhere on Earth, and we have basically run out of new low cost places to...
-
The Frying Department of Tasty Chips had 115,000 partially completed units in work in process at the end of August. All of the direct materials had been added to these units, but the units were only...
-
Indicate whether each of the following statements is true or false by writing T or F in the answer c olumn. Past consideration is a promise to repay someone for a benefi t after it has been received.
-
Indicate whether each of the following statements is true or false by writing T or F in the answer c olumn. A contract performed because it is the right thing to do is an example of forbearance...
-
Indicate whether each of the following statements is true or false by writing T or F in the answer c olumn. A direct, unqualifi ed rejection terminates an offer.
-
Indicate whether each of the following statements is true or false by writing T or F in t he a nswer c olumn. A person who profi ts from the sale of stock as a result of using nonpublic information...
-
Indicate whether each of the following statements is true or false by writing T or F in the answer c olumn. The Uniform Commercial Code states that additional consideration is always required in the...
-
What cultural values and myths (research at least three) prevent society from understanding why women stay with their abusive partners? Can these values/myths be changed? If so, how could that be...
-
An example of prescriptive analytics is when an action is recommended based on previously observed actions. For example, an analysis might help determine procedures to follow when new accounts are...
-
Maria Am Corporation uses a process costing system. The Baking Department is one of the processing departments in its strudel manufacturing facility. In June in the Baking Department, the cost of...
-
Oslo Company prepared the following contribution format income statement based on a sales volume of 1,000 units (the relevant range of production is 500 units to 1,500 units): Sales. . . . . . . . ....
-
Haley Romeros had just been appointed vice president of the Rocky Mountain Region of the Bank Services Corporation (BSC). The company provides check processing services for small banks. The banks...
-
On June 24, 2015, two grocery retailers, Netherlandsbased Ahold and Belgium-based Delhaize, announced their intention to engage in a merger of equals. By merging their activities, the two companies...
-
How would the following events (reported this year) affect your forecasts of a firms future profit or loss? An asset write-down. A merger or acquisition. The sale of a major division. The...
-
An investment banker states, It is not worth my while to worry about detailed long-term forecasts. Instead, I use the following approach when forecasting cash flows beyond three years. I assume that...
Study smarter with the SolutionInn App