Mahon Corporation has two production departments, Casting and Customizing. The company uses a job-order costing system and computes a predetermined overhead rate in each production department. The Casting Department’s predetermined overhead rate is based on machine-hours and the Customizing Department’s predetermined overhead rate is based on direct labor-hours. At the beginning of the current year, the company had made the following estimates:
Casting Customizing
Machine-hours 19,400 15,400
Direct labor-hours 6,500 7,700
Total fixed manufacturing overhead cost $ 128,040 $ 83,930
Variable manufacturing overhead per machine-hour $ 1.90
Variable manufacturing overhead per direct labor-hour $ 3.80
During the current month the company started and finished Job T138. The following data were recorded for this job:
Job T138: Casting Customizing
Machine-hours 60 30
Direct labor-hours 11 100
The amount of overhead applied in the Customizing Department to Job T138 is closest to: (Round your intermediate calculations to 2 decimal places.)
Multiple Choice
$555.00
$113,190.00
$1,470.00
$277.50
Opunui Corporation has two manufacturing departments--Molding and Finishing. The company used the following data at the beginning of the year to calculate predetermined overhead rates:
Molding Finishing Total
Estimated total machine-hours (MHs) 4,000 1,000 5,000
Estimated total fixed manufacturing overhead cost $ 29,000 $ 4,900 $ 33,900
Estimated variable manufacturing overhead cost per MH $ 1.50 $ 3.00
During the most recent month, the company started and completed two jobs--Job A and Job M. There were no beginning inventories. Data concerning those two jobs follow:
Job A Job M
Direct materials $ 16,700 $ 9,900
Direct labor cost $ 23,400 $ 10,300
Molding machine-hours 2,700 1,300
Finishing machine-hours 400 600
Assume that the company uses a plantwide predetermined manufacturing overhead rate based on machine-hours. The total manufacturing cost assigned to Job M is closest to: (Round your intermediate calculations to 2 decimal places.)
Multiple Choice
$9,900
$10,300
$36,502
$16,302
Kluth Corporation has two manufacturing departments--Molding and Customizing. The company used the following data at the beginning of the year to calculate predetermined overhead rates:
Molding Customizing Total
Estimated total machine-hours (MHs) 12,000 1,700 13,700
Estimated total fixed manufacturing overhead cost $ 26,400 $ 6,290 $ 32,690
Estimated variable manufacturing overhead cost per MH $ 1.50 $ 3.00
During the most recent month, the company started and completed two jobs--Job C and Job M. There were no beginning inventories. Data concerning those two jobs follow:
Job C Job M
Direct materials $ 14,500 $ 8,200
Direct labor cost $ 21,400 $ 8,200
Molding machine-hours 1,250 10,750
Customizing machine-hours 1,200 500
Required:
Assume that the company uses departmental predetermined overhead rates with machine-hours as the allocation base in both production departments. Further assume that the company uses a markup of 20% on manufacturing cost to establish selling prices. Calculate the selling prices for Job C and for Job M. (Do not round intermediate calculations.)
Selling price for Job C
Selling price for Job M
The following accounts are from last year's books of Sharp Manufacturing:
Raw Materials
Debit Credit
Balance 0 (b) 157,000
(a) 171,500
14,500
Work In Process
Debit Credit
Balance 0 (f) 522,000
(b) 133,500
(c) 171,000
(e) 217,500
0
Finished Goods
Debit Credit
Balance 0 (g) 475,000
(f) 522,000
47,000
Manufacturing Overhead
Debit Credit
(b) 23,500 (e) 217,500
(c) 27,500
(d) 159,000
7,500
Cost of Goods Sold
Debit Credit
(g) 475,000
Sharp uses job-order costing and applies manufacturing overhead to jobs based on direct labor costs. What is the amount of direct materials used for the year?
Multiple Choice
$133,500
$171,500
$171,000
$157,000
