Question

TB Problem Qu. 2-277 Hultquist Corporation has two manufacturing . Hultquist Corporation has two manufacturing departments-Forming and Customizing. The company used the following data at the beginning of the period to calculate predetermined overhead rates: Forming Customizing 3,000 $10,500 $ 1.00 Total 10,000 $28,700 Estimated total machine-hours (MHs) Entimated total fixed manufacturing overhead cost Estimated variable manufacturing overhead cost per MH 7,000 $18,200 $ 2.00 During the period, the company started and completed two jobs-Job C and Job L. Data concerning those two jobs follow: Job C $15,800 $9,300 $22,600 $9,500 2,500 2,500 Job L Direct materials Direct labor cost Forning machine-hours Customizing machine-hours 500 4,500 Required: a. Assume that the company uses a plantwide predetermined manufacturing overhead rate based on machine-hours. Calculate that overhead rate. (Round your answer to 2 decimal places.) b. Assume that the company uses a plantwide predetermined manufacturing overhead rate based on machine-hours. Calculate the amount of manufacturing overhead applied to Job L. (Do not round intermediate calculations.) c Assume that the company uses a plantwide predetermined manufacturing overhead rate based on machine-hours. Calculate the total manufacturing cost assigned to Job L. (Do not round intermediate calculations.) d. Assume that the company uses a plantwide predetermined manufacturing overhead rate based on machine-hours and uses a markup of 20% on manufacturing cost to establish selling prices. Calculate the selling price for Job L. (Do not round intermediate calculations.) e. Assume that the company uses departmental predetermined overhead rates with machine-hours as the allocation base in both departments. What is the departmental predetermined overhead rate in the Forming department? (Round your answer to 2 decimal places.) LAssume that the company uses departmental predetermined overhead rates with machine-hours as the allocation base in both production departments. What is the departmental predetermined overhead rate in the Customizing department? (Round your answer to 2 decimal places.) g.Assume that the company uses departmental predetermined overhead rates with machine-hours as the allocation base in both production departments. How much manufacturing overhead will be applied to Job L? (Do not round intermediate calculations.) h. 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 price for Job L. (Do not round intermediate calculations.) 1 of 20 Prev Score answer >

Answer 1

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Hultquist Corporation
Answer a
Calculation of Predetermined OH Rate	Amount $			Note
Machine Hours	10,000.00			A
Estimated fixed manufacturing Overhead	28,700.00			B
Predetermined OH Rate	2.87			C=B/A
Answer b
Overhead applied to Job L	Forming	Customizing	Total	Note
Machine Hours- Forming	500.00	4,500.00		D
Predetermined OH Rate- fixed	2.87	2.87		See C
Variable overhead rate	1.00	2.00		E
Total overhead rate	3.87	4.87		F=E+C
Overhead applied to Job L	1,935.00	21,915.00	23,850.00	G=D*F
Answer c
Manufacturing cost of Job L	Amount $			Note
Direct materials	9,300.00
Direct Labor	9,500.00
Overhead applied to Job L	23,850.00			See G
Manufacturing cost of Job L	42,650.00			H
Answer d
Selling price of Job L	Amount $			Note
Manufacturing cost of Job L	42,650.00			See H
Mark up at 20%	8,530.00			I=H*20%
Selling price of Job L	51,180.00			J=H+I
Answer e
Calculation of Predetermined departmental OH Rate	Forming			Note
Machine Hours	3,000.00			K
Estimated fixed manufacturing Overhead	10,500.00			L
Predetermined departmental OH Rate	3.50			M=L/K
Answer f
Calculation of Predetermined departmental OH Rate	Customizing			Note
Machine Hours	7,000.00			N
Estimated fixed manufacturing Overhead	18,200.00			O
Predetermined departmental OH Rate	2.60			P=O/N
Answer g
Overhead applied to Job L	Forming	Customizing	Total	Note
Machine Hours- Forming	500.00	4,500.00		See D
Predetermined OH Rate- fixed	3.50	2.60		See M,P
Variable overhead rate	1.00	2.00
Total overhead rate	4.50	4.60
Overhead applied to Job L	2,250.00	20,700.00	22,950.00	Q
Answer h
Manufacturing cost of Job L	Amount $			Note
Direct materials	9,300.00
Direct Labor	9,500.00
Overhead applied to Job L	22,950.00			See Q
Manufacturing cost of Job L	41,750.00			R
Selling price of Job L	Amount $			Note
Manufacturing cost of Job L	41,750.00			See R
Mark up at 20%	8,350.00			S= R*20%
Selling price of Job L	50,100.00			T=R+S