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: ots Machine-hours required to support estimated production 152, eee Fixed manufacturing overhead cost $659,800 Variable manufacturing overhead cost per machine-hour $ 4.30 - eBook 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! References Direct materials Direct labor cost Machine-hours used $ 35e $300 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 110% of its total manufacturing cost, then what selling price per unit would it have established for Job 400? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 If Moody uses a markup percentage of 110% of its total manufacturing cost, then what selling price per unit would it have established for Job 400? (Round your intermediate calculations and final answer to the nearest whole dollar) Selling price per unit

Answer 1

Answers

• [1]

A	Fixed manufacturing overhead cost	$                  659,000
B	Machine hours required	152,000	machine hours
C = A/B	Fixed overhead rate	$                         4.34	per machine hour
D	Variable overhead rate	$                         4.30	per machine hour
E = C+D	Plantwide Predetermined Overhead rate	$                         8.64 ANSWER	per machine hour

• [2]

A	Machine hours used	35
B	Plantwide Predetermined Overhead rate	$                         8.64
C = A x B	Total manufacturing cost assigned to Job 400	$                           302	Answer

• [3]

A	Direct materials	$                           350
B	Direct labor cost	$                           300
C	Total manufacturing cost assigned to Job 400	$                           302
D = A+B+C	Total cost for the Job	$                           952
E	Total units for Job 400	50
F = D/E	Units product cost for Job 400	$                       19.05	Answer

• [4]

A	Units product cost for Job 400	$                       19.05
B = A x 110%	Mark up at 110%	$                       20.95
C = A+B	Selling price per unit	$                       40.00	Answer