Question

Moody Corporation uses a job-order costing system with a plantwide predetermined overhead rate based on machine beginning of the year, the company made the following estimates: Machine-hour required to support estimated production Fixed manufacturing overhead coat Variable manufacturing overhead cost per machine-hour 158,000 5654,000 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 Compute the total manufacturing cost assigned to Job 400. 3. If Job 400 includes 60 units, what is the unit product cost for this job? 4. Moody uses a markup percentage of 110% of its total manufacturing cost, then what selling price per unit would it have for Job 400? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 IF M a ma rentan t he tal manufacturing than what a nie narw ha < Prev 6 of 6 Next > UN

Answer 1

1)
Computation of Predetermined Overhead Rate
overhead rate=	Fixed Manufacturing Overhead Cost
	Total Machine Hours
	=654000
	158000
	$4.139
2)
Statement of Total Cost
Job400
Particulars	Amount in $
Direct Material	350
Direct Labor Cost	280
Variable Manufacturing Cost(32*4.90)	156.8
Fixed Manufacturing Cost(32*4.139)	132.448
Total Manufacturing Cost	919.248
3)
Unit cost per unit =	Total Cost
	Total Units
	=919.248
	60
	$15.3208
4)
Computation of Selling price unit
Total Manufacturing Cost (A)	$                                                        919.25
Markup	110%
Total sales value	$                                                     1,011.17
Total units	60
Selling Price per unit	$                                                           16.85