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 155,000 $651,000 4.40 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 300 s 280 35 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 120% of its total manufacturing cost, then what selling price per unit would t have established for Job 400? Complete this question by entering your answers in the tabs below Required 4 Compute the plantwide predetermined overhead rate. (Round your answer to 2 decimal places.) per MH < Required! Required 1Required 2 Required 3 ined overhead rate Required 2 >

Answer 1

	Moody Corporation
1)	Predetermined Overhead rate=(Fixed Overhead+Variable Overhead)/Total Machine Hours
	Fixed Overhead	$    6,51,000.00
	Variable Overhead=(Variable manufacturing overhead cost per hours* machine hours)=(155000*$4.40)	$    6,82,000.00
	Total Overhead=(A)	$ 13,33,000.00
	Machine Hours=(B)	155000
	Plant wide Predetermined Overhead rate=(A)/(B)	$                  8.60
2)	Total Manufacturing cost assigned to Job 400
	Direct Material	$             300.00
	Direct Labor	$             280.00
	Manufacturing overhead applied=(35 hours*$8.60 per machine hours)	$             301.00
	Total Manufacturing cost assigned to Job 400	$             881.00
3)	If Job 400 includes 50 units , the unit product cost
	Total Manufacturing cost assigned to Job 400=(A)	$                   881
	Number of units=(B)	50
	Unit Product Cost=(A)/(B)	$                      18
4)	Total Manufacturing cost	$                   881
	Add: 120% markup percentage of its manufacturing cost=($881*120%)	$                1,057
	Selling price of Job 400=(A)	$                1,938
	Number of Units=(B)	$                      50
	Selling Price per unit=(A)/(B)	$                      39