Answer:
1.
a. The estimated total overhead cost is computed as follows:
Y = $784,000 + ($2.00 per DLH)(140,000 DLHs)
Estimated fixed manufacturing overhead $ 784,000
Estimated variable manufacturing overhead:
$2.00 per DLH × 140,000 DLH= 280,000
Estimated total manufacturing overhead cost 28000+784000=$ 1,064,000
The predetermined overhead rate is computed as follows:
Estimated total manufacturing overhead (a) $ 1,064,000
Estimated total direct labor-hours (b) 140,000 DLH
Predetermined overhead rate (a) ÷ (b) $ 7.60 per DLH
b.Total manufacturing cost assigned to Job 550:
Direct materials $ 175
Direct labor 225
Manufacturing overhead applied
($7.60 per DLH × 15DLA)= 114
Total manufacturing cost of Job 550 $ 514
c.The selling price for Job 550 is computed as follows:
Job 550
Total manufacturing cost $ 514
Markup (200%) 1,028
Selling price $ 1,542
2.
a.The estimated total overhead cost is computed as follows:
Y = $784,000 + ($4.00 per MH)(70,000 MHs)
Estimated fixed manufacturing overhead $ 784,000
Estimated variable manufacturing overhead:
$4.00 per MH × 70,000 MHs= 280,000
Estimated total manufacturing overhead cost $ 1,064,000
The predetermined overhead rate is computed as follows:
Estimated total manufacturing overhead (a) $ 1,064,000
Estimated total machine-hours (b) 70,000MHs
Predetermined overhead rate (a) ÷ (b) $ 15.20 per MH
b.Total manufacturing cost assigned to Job 550:
Direct materials $ 175
Direct labor 225
Manufacturing overhead applied
($15.20 per MH × 5 MH)= 76
Total manufacturing cost of Job 550 $ 476
2.
c. The selling price for Job 550 is computed as follows:
Job 550
Total manufacturing cost $ 476
Markup (200%) 952
Selling price $ 1,428
Explanation:
