Chapter 2 Homework

Problem 1 (E2-12)
Moody Corporation uses a job-order costing system with a plantwide predetermined overhead rate
based on machine-hours. At the beginning of the year, the company made the following estimates:

Machine-hours required to support estimated production 100,000

Fixed manufacturing overhead cost $ 650,000
Variable manufacturing overhead cost per machine-hour Est Total (Uot $ 3.00
I POHR
.

Est Fotal . Ul 9
,

$ 650 .
000 t $ 31 UHX 100 .
000
=

Required: $ a 50 00 D
1 oo . ooosutls

1. Compute the plantwide predetermined overhead rate. $ a 5/ MH

.

…
=
1 OO
.

O0 . 0

2. During the year, Job 400 was started and completed. The following information was available with
respect to this job: 2 . DH 450
$
마 $ z10
(Mott $ .5 /Ut X 40 (UHs
Direct materials $450
a

=
$ 780
Direct labor cost $210 ㅡ

Machine-hours used 40 Total $ 1 .

040

Compute the total manufacturing cost assigned to Job 400.

3. If Job 400 includes 52 units, what is the unit product cost for this job?
4. If Moody uses a markup percentage of 120% of its total manufacturing cost, then what selling
price per unit would it have established for Job 400?
5.If Moody hired you as a consultant to critique its pricing methodology, what would you say?
Total Cost $ 1 040
m onit Produacost =
=
.
= $ 20µnit
number oA units 52

K $ 20 +$
.
20 x (20 % .
= $ 20 ts$ 24 =
$ 44
으

Uark ap
망

$ 1 04 bt
. $ 1 040 X (20 %
.
= $ 44 /anif
52 d 어 its

5 Iffhere
.
are mu ( fiple departments ,
uSe
Mulfiple POHR

Selling costs or
⇒ Indude fhem in fhe price
Adminisfration costs
 Problem 2 (P2-19)
High Desert Potteryworks makes a variety of pottery products that it sells to retailers. The company
uses a job-order costing system in which departmental predetermined overhead rates are used to
apply manufacturing overhead cost to jobs. The predetermined overhead rate in the Molding
Department is based on machine-hours, and the rate in the Painting Department is based on direct
labor-hours. At the beginning of the year, the company provided the following estimates:

Department
Molding Painting
Direct labor-hours 12,000 @60,000
Machine-hours 070,000 8,000
Fixed manufacturing overhead cost $ 497,000 $ 615,000
Variable manufacturing overhead per machine-hour $ 1.50 -
Variable manufacturing overhead per direct labor-hour - $ 2.00

Job 205 was started on August 1 and completed on August 10. The company's cost records show
the following information concerning the job:

Department
Molding Painting
Direct labor-hours 30 a 84
Machine-hours ㅇ110 20
Direct materials $ 770 $ 1,332
Direct labor cost $ 525 $ 1,470

Required:
1. Compute the predetermined overhead rates used in the Molding Department and the Painting
Department.
2. Compute the total overhead cost applied to Job 205.
3-a. What would be the total manufacturing cost recorded for Job 205?
3-b. If the job contained 50 units, what would be the unit product cost?

$ 49 n 000 t $ 1 50 xn0 000 $ G 15 000 + s( 2 00 X 60 000

. .

그 POHR ( (
Molding
.
.

)
. .

POHR ( Painting )
=
=

uHsn
-

o 000
. 60 000 DLHs
.

$ 490 . 000 t $ 105 . 000 $ 615 , 000 t $ 120 000

…
.

no . oobuHs 60 000 DLHs

.

$ 602 000
~$
n 35 000
.

=
.

7o . 000 MlHs
=

60000 pcHs
=
$ 860 / MH
=
$ 12 25/DLH
.

2 .(
MoldingDepartment = 110MHs X $ 8 60 / MH
.
=
$ 946

Painfing Department =
&4 DLHsX $ ( 2 25 / D 대 .
= $ 1 029
.

( 3 b os roduct
TU
nit PC
3 aa
Molding Painfing Total
-
-
.

Totlcost
Du $ nno t $ l ,
nn 2 $ 2 102 , =

number of units
$ 525 f $ 1 4n 0 $ 1 995
마 . ,

$ G 0n 2
$ 1 029 $ 1 . an
=

$
t
~

[Mo 어 $ 946 .

50
n 6 0 2
. =
$ 121 44 (unit .