Harnett Corporation Has Two Manufacturing Departments--Molding and Assembly

question 141

Essay

Harnett Corporation has two manufacturing departments--Molding and Assembly.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 M.Data concerning those two jobs follow: 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 E.
c.Assume that the company uses a plantwide predetermined manufacturing overhead rate based on machine-hours.Calculate the total manufacturing cost assigned to Job E.
d.Assume that the company uses a plantwide predetermined manufacturing overhead rate based on machine-hours and uses a markup of 60% on manufacturing cost to establish selling prices.Calculate the selling price for Job E.
e.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 Molding department?
f.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 Assembly department?
g.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?
h.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 60% on manufacturing cost to establish selling prices.Calculate the selling price for Job E.

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Definitions:

Credit Period

The amount of time allowed by a seller to a buyer to pay for the goods or services purchased on credit, usually described in days.

Highly Perishable

Describes goods or products that have a short shelf life and require immediate consumption, sale, or processing to avoid spoilage or loss of value.

High Cost Item

Products or services that require a significant amount of money to purchase or maintain, often reflecting quality or luxury status.

Competition

The rivalry between businesses or sellers in the same market, aiming to achieve higher sales, profits, and market share.