19 140000 70000 784000 200 400 points s 225 References the

19 140,000 70,000 $784,000 $ 2.00 $ 4.00 points s 225 References the total manufacturing cost of Job 550. the total cost of Job 550 Of 200% of its total g cost what selling price would it establish for Job 550? tlons to 2

Solution

Solution

1.

Estimated fixed manufacturing overhead=$784,000

Estimated variable manufacturing overhead ($2 ×140,000 LH)

=$280,000

Estimated total manufacturing overhead=$1,064,000

a. Predetermined overhead rate=estimated total manufacturing overhead/estimated labour hours

=$1,064,000/140,000

=$7.6 per LH(labour hour)

B. Total manufacturing cost of job 550:

Direct material=$175

Direct labour cost=$225

Manufacturing overhead applied(15×$7.6)=$114

Total manufacturing cost=$514

C.

Total manufacturing cost=$514

Markup (200%×514)=$1028

Selling price(514+1028)=$1,542

2.

Estimated fixed manufacturing overhead=$784,000

Estimated variable manufacturing overhead ($4 ×70,000 MH)

=$280,000

Estimated total manufacturing overhead=$1,064,000

a. Predetermined overhead rate=estimated total manufacturing overhead/estimated machine hours

=$1,064,000/70,000

=$15.2 per MH(machine hour)

B. Total manufacturing cost of job 550:

Direct material=$175

Direct labour cost=$225

Manufacturing overhead applied(5×$15.2)=$76

Total manufacturing cost=$476

C.

Total manufacturing cost=$476

Markup(476×200%)=$952

Selling price(476×952)=$1428