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 158,000 $ 657,000 $ 4.60 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 $ 320 $ 280 34 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 is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Compute the plantwide predetermined overhead rate. (Round your answer to 2 decimal places.) Predetermined overhead rate per Predetermined overhead rate the MH

Answer 1

Part 1
Fixed Manufacturing overhead cost	$                             6,57,000
Variable Manufacturing overhead cost($4.60*158,000)	$                             7,26,800
Total Manufacturing overhead cost	$                           13,83,800
Estimated machine hours	158000	hours
Manufacturing overhead cost per machine hour	$                                    8.76	per MHs
Part 2
Direct Materials	$                                320.00
Direct labor	$                                280.00
Manufacturing overhead($8.76*34 hours)	$                                297.84
Total Manufacturing Cost	$                                     898
Part 3
Total Manufacturing Cost	$                                     898
No. of units produced	50	units
Unit Product cost($898/50)	$                                       18	per unit
Part 4
Unit Product cost	$                                       18
Add:Markup(130% of $18)	$                                       23
Selling price per unit	$                                       41