Question

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 Fixed manufacturing overhead cost Variable manufacturing overhead cost per machine-hour 154,000 $ 655,000 $ 5.00 Required: 1. Compute the plantwide predetermined overhead rate. 2. During the year, Job 400 was started and completed. The following information was available with respect to this job: Direct materials Direct labor cost Machine-hours used $ 330 $ 210 30 Compute the total manufacturing cost assigned to Job 400. 3. If Job 400 includes 50 units, what is the unit product cost for this job? 4. If Moody uses a markup percentage of 130% of its total manufacturing cost, then what selling price per unit would it have established for Job 400?

Answer 1

1. Plantunde predetermined overhead rate: - Total fixed overhead cost $6.55,000 A Estimated machine howes : 154,000 -B Fixed overhead rate / howe : 4025 (A/B) - c Variable Querhead rate / machine hours.00 Total Querhead rate / machine hour g. 25 20 manufacturing cost assigned to Job 4000 - Direct material cost : $ 330 Direct labour cost : $ 210 Variable cuerhead cost (30 hrs x5): $ 150 Manufacturing cost excluding fisced cost: 5690 3. unit product cost for overhead is not charged Total cost / Total units Job to = yoo assuming fired it: $690/50 - $1308 4. selling price per unit assuming fixed ouerhead is not charged to Job at 130% markup: - Total cost unit: $13.8. Add: Markup : & 17. g4 selling puice : $3174