Carcana Corporation Has Two Manufacturing Departments--Machining and Finishing

question 253

Essay

Carcana Corporation has two manufacturing departments--Machining and Finishing.The company used the following data at the beginning of the period to calculate predetermined overhead rates: During the period, the company started and completed two jobs--Job E and Job G.Data concerning those two jobs follow: Required:
a.Assume that the company uses departmental predetermined overhead rates with machine-hours as the allocation base in both departments.What is the departmental predetermined overhead rate in the Machining department?
b.Assume that the company uses departmental predetermined overhead rates with machine-hours as the allocation base in both production departments.What is the departmental predetermined overhead rate in the Finishing department?
c.Assume that the company uses departmental predetermined overhead rates with machine-hours as the allocation base in both production departments.How much manufacturing overhead will be applied to Job E?
d.Assume that the company uses departmental predetermined overhead rates with machine-hours as the allocation base in both production departments.How much manufacturing overhead will be applied to Job G?
e.Assume that the company uses departmental predetermined overhead rates with machine-hours as the allocation base in both production departments.Further assume that the company uses a markup of 80% on manufacturing cost to establish selling prices.Calculate the selling price for Job E.
f.Assume that the company uses departmental predetermined overhead rates with machine-hours as the allocation base in both production departments.Further assume that the company uses a markup of 80% on manufacturing cost to establish selling prices.Calculate the selling price for Job G.
g.Assume that the company uses departmental predetermined overhead rates with machine-hours as the allocation base in both production departments.If both jobs were sold during the month, what was the company's cost of goods sold for the month?

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Definitions:

Schizophrenia

A chronic and severe mental disorder that affects how a person thinks, feels, and behaves, characterized by distortions in thinking, perception, emotions, language, sense of self, and behavior.

Depressive Disorders

Mood disorders in which the change in mood is only in the direction of depression or lowered mood, followed by a return to normal mood with recovery. See also bipolar mood disorders.

Market Penetration

The strategy of selling more of a product or service to the existing market to increase its market share.

Cross Selling

The practice of selling additional products or services to existing customers, often related to their previous purchases to enhance customer value.