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 145,000 72,500 $ 406,000 $ 4.40 $ 8.80 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 Required: $ 183 $ 295 15 5 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 12. Machine-hours: per DLH 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 145,000 72,500 $ 406,000 $ 4.40 $ 8.80 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 Required: $ 183 $ 295 15 5 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 12. Machine-hours: per DLH
Expert Answer:
Answer rating: 100% (QA)
1 Direct laborhours a Predetermined overhead rate per DLH Total estimated overhead cost Fixed manufacturing overhead cost Variable manufacturing overh... View the full 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
-
The following list of balances has been extracted from the records of company cowgale co as of 31 October 2017 the end of the most recent financial year. Notes 1. The balance on the corporation tax...
-
Technological changes have decreased the cost and increased the speed of information dissemination in security markets. Why might one suspect that firms following a "traditional" approach to...
-
Standard Recipe Card Student ID Name of the dish Dish Description Portion Nos. Portion Size Sales Price Food Cost % Ingredients Item Qty Req. UoM Cost per UoM Yield % Actual Cost Input Calculation...
-
Air at standard conditions flows through an 8-in.-diameter, 14.6-ft-long, straight duct with the velocity versus head loss data indicated in the following table. Determine the average friction factor...
-
Jordan Sales Company (organized as a corporation on April 1, 2014) has completed the accounting cycle for the second year, ended March 31, 2016. Jordan also has completed a correct trial balance as...
-
If a sensor (I1:0) is used to count the incoming cars, and another sensor (I1:1) is used to count the outgoing cars, please design a PLC program such that when the number of cars in the parking lot...
-
Lionel Train Company has the following information for this year and next year. Current Next Year Year Trains purchased 40,000 48,000 Trains scrapped in production 4,000 3,000 Trains sold 36,000...
-
On the formation of HYG Corporation, A (a cash-basis individual) receives 70 shares (70%) of HYG common stock by transferring ordinary income property with a basis of $10,000 and a FMV of $70,000,...
-
Why is termination of a construction contract a high risk option?
-
Esther, the sales manager for Reynoso Products, wants to sponsor a one-week "Customer Appreciation Sale" during which the firm will sell additional units of a product at the lowest price possible...
-
Rocket spray's manufacturing costs for July are: Materials cost: $4,000 Labor cost: $3,200 Overhead: $800 If Rocket spray's one plant employee manufactured 10 bottles per hour, and worked 8 hours per...
-
1-A 0.90 T magnetic field points due North, a) Find the magnitude and direction of the force on a 1.50 C charge moving westward with a velocity of 1.50 m/s. b) Repeat for a -1.50 C charge with the...
-
Write an Essay or research about benchmarking, you can use one or this ISO 9000 and 14000 total quality management benchmarking
-
7. Baladna wants to analyze process that includes delivery by suppliers, production inside the company, transportation to to its customers and information systems. Then it also wants to find out...
-
Identify the activities and users associated with accounting.
-
At the beginning of the year, Ortiz Eyewear had total assets of 900,000 and total liabilities of 440,000. Answer the following questions. a. If total assets decreased 100,000 during the year and...
-
Ai Fang Co. opened as a new computer services business on August 1, 2025. During August, the following transactions occurred. 1. Shareholders invested 20,000 cash in the business in exchange for...
Study smarter with the SolutionInn App