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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 cost

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 departmentsâMolding 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 jobsâJob 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

7.

value:
12.00 points

Required information

Exercise 4-15 Part 2

Assume Smithson uses departmental overhead rates based on machine-hours.

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 Smithsonâs cost of goods sold for the year? (Round your intermediate calculations to 2 decimal places.)

Jul 26 2021 View more View Less