The Huyden Company Builds Equipment to Customer's Specifications

question 16

Essay

The Huyden Company builds equipment to customer's specifications. On March 1, two jobs were in process with the following costs and information:
*Applied on the basis of machine hours
During March, Job 45 was started and Job 44 was completed and delivered to the customer. Job 43 was missing a part that was backordered and would be completed in June. The following costs were incurred in March:
It is Huyden's policy to bill clients at cost plus 40 percent.
Required:

a.
Calculate the overhead rate that Huyden is using.
b.
Calculate the overhead applied to each job during the month of March.
c.
Calculate the balance in work in process on March 31.
d.
What was the price of Job 44?

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Definitions:

Pivot

A central point around which something rotates or oscillates.

Circumduction

Movement in a circular motion.

Abduction

The action of moving a limb or different body part away from the body's center line or apart from another section.

Flexion

A bending movement around a joint in a limb (e.g., elbow or knee) that decreases the angle between the bones of the limb.