Olmscheid Corporation has two manufacturing departments--Molding and Customizing. The company used the following data at the beginning of the period to calculate predetermined overhead rates:
| Molding | Customizing | Total |
|---|
| Estimated total machine-hours (MHs) | 5,000 | 5,000 | 10,000 |
|---|
| Estimated total fixed manufacturing overhead cost | $21,000 | $14,000 | $ 35,000 |
|---|
| Estimated variable manufacturing overhead cost per MH | $ 1.50 | $ 2.40 | |
|---|
During the period, the company started and completed two jobs--Job F and Job K. There were no beginning inventories. Data concerning those two jobs follow:
| Job F | Job K |
|---|
| Direct materials | $ 12,700 | $ 6,400 |
|---|
| Direct labor cost | $ 19,100 | $ 7,900 |
|---|
| Molding machine-hours | 3,400 | 1,600 |
|---|
| Customizing machine-hours | 2,000 | 3,000 |
|---|
Required:
a. Assume that the company uses a plantwide predetermined manufacturing overhead rate based on machine-hours. Calculate that overhead rate.
b. Assume that the company uses a plantwide predetermined manufacturing overhead rate based on machine-hours. Calculate the amount of manufacturing overhead applied to Job F.
c. Assume that the company uses a plantwide predetermined manufacturing overhead rate based on machine-hours. Calculate the amount of manufacturing overhead applied to Job K.
d. Assume that the company uses a plantwide predetermined manufacturing overhead rate based on machine-hours. Calculate the total manufacturing cost assigned to Job F.
e. Assume that the company uses a plantwide predetermined manufacturing overhead rate based on machine-hours. Calculate the total manufacturing cost assigned to Job K.
f. Assume that the company uses a plantwide predetermined manufacturing overhead rate based on machine-hours and uses a markup of 30% on manufacturing cost to establish selling prices. Calculate the selling price for Job F.
g. Assume that the company uses a plantwide predetermined manufacturing overhead rate based on machine-hours and uses a markup of 30% on manufacturing cost to establish selling prices. Calculate the selling price for Job K.
h. Assume that the company uses a plantwide predetermined manufacturing overhead rate based on machine-hours. If both jobs were sold during the month, what was the company's cost of goods sold for the month?
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