Home / Questions / Finishing Assembly Welding 62,000 $150,000 $220,000 Estimated overhead 6,000 4,500 10,000 Direct lab
Finishing Assembly Welding 62,000 $150,000 $220,000 Estimated overhead 6,000 4,500 10,000 Direct labor hours $120,000 $90,000 $150,000 Direct labor cost 2,000 5,000 1,000 Machine hours Currently, overhead is applied on the basis of machine hours using a plantwide rate However, Janine, the controller, has been wondering whether it might be worthwhile to use departmental overhead rates. She has analyzed the overhead costs and drivers for the various de- partments and decided that Welding and Finishing should base their overhead rates on machine hours and that Assembly should base its overhead rate on direct labor hours. Janine has been asked to prepare bids for two jobs with the following information: . c Job 2 Job 1 $9.340 Direct materials $6725 Direct labor cost $3,100 $1,800 Direct labor hours: Welding Assembly Finishing Number of machine hours: 20 10 60 20 20 70 Welding Assembly Finishing 50 50 60 25 90 125 The typical bid price includes a 35% mrkup over full manufacturing cost. Round all overhead rates to the nearest cent. Round all bid prices to the nearest dollar. F Currently, overhead is applied on the basis of machine hours using a plantwide rate. However, Janine, the controller, has been wondering whether it might be worthwhile to use departmental overhead rates. She has analyzed the overhead costs and drivers for the various de- partments and decided that Welding and Finishing should base thecir overhead rates on machine hours and that Assembly should base its overhead rate on direct labor hours. Janine has been asked to prepare bids for two jobs with the following information: Job 1 Job 2 $6,725 $9.340 Direct materials Direct labor cost $1,800 $3,100 Direct labor hours: Welding Assembly Finishing 10 20 60 20 70 20 Number of machine hours: Welding Assembly Finishing 50 50 60 25 125 90 The typical bid price includes a 35% markup over full manufacturing cost. Round all overhead rates to the nearest cent. Round all bid prices to the nearest dollar Required: 1. Calculate a plantwide rate for Folsom Company based on machine hours. What is the bid price of each job using this rate? 2 Calculate departmental overhead rates for the producing departments. What is the bid price of each job using these rates?
Apr 04 2020 View more View Less
Consider Fred’s investment in units of health capital with the following function: (a) Indicate some of the components of the cost of capital, and why they are costs. (b...
May 27 2020Refer to the information provided in Figure below to answer the question(s) that follow. Marked out of 1.00 P Flag question Number of lawns mowed per day 3 0 1 2 L Numbe...
Apr 06 2021The common stock of Flavorful Teas has an expected return of 16.35 percent. The return on the market is 13.5 percent and the risk-free rate of return is 4.0 percent. What...
May 30 2021Using the appropriate table from the Chapter 12 Appendices, record the present-value factor at 10% for each year and compute the present-value cost of owning and the pres...
May 27 2020James Blatt hired Marilyn Scott to sell insurance for the Massachusetts Mutual Life Insurance Company. Their contract stated, "Nothing in this contract shall be construed...
Aug 05 2021LaForge will use its risk-adjusted rate of return to assist it in arriving at its current stock price, which is 12%. In addition, its long-run constant growth rate for Fr...
Jul 02 2021A. Risk-free assets. Government bonds are considered to be 'risk-free' assets. Why, then, do they give a return? Are they truly completely free of risk?B. On January 27, ...
Jul 05 2021The Nursing Home Pension Fund filed suit against Oracle Corporation alleging that Larry Ellison, the company's CEO, misled investors in 2001 about the true financial cond...
Aug 01 2021In C++, what is the difference between method overloading and method overriding?
Aug 12 2021Colgate-Palmolive Company has just paid an annual dividend of $1.23. Analysts are predicting dividends to grow by $0.19 per year over the next five years. Afterâ then, ...
Jun 17 2021