16) Taveras Corporation is currently operating at 50% of its available manufacturing capacity. It 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 260,000
Fixed manufacturing overhead cost $5,720,000
Variable manufacturing overhead cost per machine-hour$2.00

Required:

1. Compute the plantwide predetermined overhead rate.

2. During the year, Job P90 was started, completed, and sold to the customer for $4,400. The following information was available with respect to this job:

Direct materials$2,024
Direct labor cost$1,452
Machine-hours used 91

Compute the total manufacturing cost assigned to Job P90.

Compute the plantwide predetermined overhead rate.
Predetermined Overhead Rate: per MH

During the year, Job P90 was started, completed and sold to the customer for $4,400. Compute the total manufacturing cost assigned to Job P90.
Direct Materials
Direct Labor
Overhead Applied
Total Manufacturing Cost

17) Landen Corporation uses a job-order costing system. At the beginning of the year, the company made the following estimates:

Direct labor-hours required to support estimated production 115,000
Machine-hours required to support estimated production 57,500
Fixed manufacturing overhead cost $322,000
Variable manufacturing overhead cost per direct labor-hour$3.40
Variable manufacturing overhead cost per machine-hour$6.80

During the year, Job 550 was started and completed. The following information is available with respect to this job:
Direct materials$252
Direct labor cost$370
Direct labor-hours 15
Machine-hours 5
Required:

1. Assume that Landen has historically used a plantwide predetermined overhead rate with direct labor-hours as the allocation base. Under this approach:

a. Compute the plantwide predetermined overhead rate.

b. Compute the total manufacturing cost of Job 550.

c. If Landen uses a markup percentage of 200% of its total manufacturing cost, what selling price would it establish for Job 550?

2. Assume that Landen’s controller believes that machine-hours is a better allocation base than direct labor-hours. Under this approach:

a. Compute the plantwide predetermined overhead rate.

b. Compute the total manufacturing cost of Job 550.

c. If Landen uses a markup percentage of 200% of its total manufacturing cost, what selling price would it establish for Job 550?

(Round your intermediate calculations to 2 decimal places. Round your "Predetermined Overhead Rate" answers to 2 decimal places and all other answers to the nearest whole dollar.)

1. Direct labor hours
a. predetermined overhead rate per DLH
b. total manufacturing cost of job 550
c. selling price
2. Machine hours
a. predetermined overhead rate ___ per MH
b. total manufacturing cost of job 550
c. selling price

18) White Company has two departments, Cutting and Finishing. The company uses a job-order costing system and computes a predetermined overhead rate in each department. The Cutting Department bases its rate on machine-hours, and the Finishing Department bases its rate on direct labor-hours. At the beginning of the year, the company made the following estimates:
Department
CuttingFinishing
Direct labor-hours 8,100 64,000
Machine-hours 52,700 3,300
Total fixed manufacturing overhead cost$360,000$437,000
Variable manufacturing overhead per machine-hour$3.00 —
Variable manufacturing overhead per direct labor-hour —$3.75
Required:

1. Compute the predetermined overhead rate for each department.

2. The job cost sheet for Job 203, which was started and completed during the year, showed the following:

CuttingFinishing
Direct labor-hours 5 16
Machine-hours 80 5
Direct materials $720 $380
Direct labor cost $100 $320
Using the predetermined overhead rates that you computed in requirement (1), compute the total manufacturing cost assigned to Job 203.

3. Would you expect substantially different amounts of overhead cost to be assigned to some jobs if the company used a plantwide predetermined overhead rate based on direct labor-hours, rather than using departmental rates?

Compute the predetermined overhead rate for each department. (Round your answers to 2 decimal places.)
predetermined overhead rate

Using the predetermined overhead rates that you computed in requirement (1), compute the total manufacturing cost assigned to Job 203. (Round your intermediate calculations to 2 decimal places and your final answer to the nearest dollar amount.)
total manufacturing cost

Would you expect substantially different amounts of overhead cost to be assigned to some jobs if the company used a plantwide predetermined overhead rate based on direct labor-hours, rather than using departmental rates?
yes or no