ACC 202 Chapter Notes - Chapter 3: Finished Good
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Moody Corporation uses a job-order costing system with a plantwide predetermined overhead rate based on machine-hours. At the beginning of the year, the company made the following estimates:
Machine-hours required to support estimated production | 151,000 | |
Fixed manufacturing overhead cost | $ | 656,000 |
Variable manufacturing overhead cost per machine-hour | $ | 5.00 |
Direct materials | $ | 310 |
Direct labor cost | $ | 300 |
Machine-hours used | 35 | |
QUESTION: If Moody uses a markup percentage of 130% of its total manufacturing cost, then what selling price per unit would it have established for Job 400?
Collini Corporation has two production departments, Machining and Customizing. The company uses a job-order costing system and computes a predetermined overhead rate in each production department. The Machining Departmentâs predetermined overhead rate is based on machine-hours and the Customizing Departmentâs predetermined overhead rate is based on direct labor-hours. At the beginning of the current year, the company had made the following estimates:
Machining | Customizing | |||||
Machine-hours | 17,000 | 15,000 | ||||
Direct labor-hours | 3,000 | 6,000 | ||||
Total fixed manufacturing overhead cost | $ | 102,000 | $ | 61,200 | ||
Variable manufacturing overhead per machine-hour | $ | 1.70 | ||||
Variable manufacturing overhead per direct labor-hour | $ | 4.10 | ||||
During the current month the company started and finished Job T268. The following data were recorded for this job:
Job T268: | Machining | Customizing | ||||
Machine-hours | 80 | 30 | ||||
Direct labor-hours | 30 | 50 | ||||
Direct materials | $ | 720 | $ | 380 | ||
Direct labor cost | $ | 900 | $ | 1,500 | ||
The total job cost for Job T268 is closest to:
Snappy Company has a job-order costing system and uses apredetermined overhead rate based on direct labor-hours to applymanufacturing overhead to jobs. Manufacturing overhead cost anddirect labor hours were estimated at $45,000 and 30,000 hours,respectively, for the year. In July, Job #334 was completed at acost of $2,150 in direct materials and $1,500 in direct labor. Thelabor rate is $5.00 per hour. By the end of the year, Snappy hadworked a total of 35,000 direct labor-hours and had incurred$55,250 actual manufacturing overhead cost. |
If Job #334 contained 100 units, the unit product cost on thecompleted job cost sheet would be:
$41.00
$36.00
$37.67
$38.00