Home / Questions / Exercise 4-15 Plantwide and Departmental Overhead Rates; Job Costs [LO4-1, LO4-2, LO4-3] ...
Exercise 4-15 Plantwide and Departmental Overhead Rates; Job Costs [LO4-1, LO4-2, LO4-3]
[The following information applies to the questions displayed below.]
Smithson Company uses a job-order costing system and has two manufacturing departmentsâMolding and Fabrication. The company provided the following estimates at the beginning of the year:
| Molding | Fabrication | Total | ||||
| Machine-hours | 30,000 | 40,000 | 70,000 | |||
| Fixed manufacturing overhead costs | $ | 700,000 | $ | 230,000 | $ | 930,000 |
| Variable manufacturing overhead per machine-hour | $ | 5.00 | $ | 5.00 | ||
During the year, the company had no beginning or ending inventories and it started, completed, and sold only two jobsâJob D-75 and Job C-100. It provided the following information related to those two jobs:
| Job D-75: | Molding | Fabrication | Total | |||
| Direct materials cost | $ | 373,000 | $ | 327,000 | $ | 700,000 |
| Direct labor cost | $ | 210,000 | $ | 130,000 | $ | 340,000 |
| Machine-hours | 22,000 | 8,000 | 30,000 | |||
| Job C-100: | Molding | Fabrication | Total | |||
| Direct materials cost | $ | 210,000 | $ | 280,000 | $ | 490,000 |
| Direct labor cost | $ | 150,000 | $ | 270,000 | $ | 420,000 |
| Machine-hours | 8,000 | 32,000 | 40,000 | |||
Smithson had no overapplied or underapplied manufacturing overhead during the year.
7.
value:
12.00 points
Required information
Exercise 4-15 Part 2
Assume Smithson uses departmental overhead rates based on machine-hours.
2-a. Compute the predetermined departmental overhead rates. (Round your answer to 2 decimal places.)
2-b. Compute the total manufacturing costs assigned to Job D-75 and Job C-100. (Round your intermediate calculations to 2 decimal places.)
2-c. If Smithson establishes bid prices that are 120% of total manufacturing costs, what bid price would it have established for Job D-75 and Job C-100? (Round your intermediate calculations to 2 decimal places.)
2-d. What is Smithsonâs cost of goods sold for the year? (Round your intermediate calculations to 2 decimal places.)
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