Question

Moody Corporation uses a job-order costing system with a plantwide predetermined overhead rate based on machine-hours. At beginning of the year, the company made the following estimates Machine Tid Variable r ede med production a turing overleados facturing overhead coat machinehou 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 Dit labor con 270 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. If Moody uses a markup percentage of 120% of its to manufacturing cost, then what selling price per unit would have established for Job 4007 Landen Corporationes a job-order costing system. At the beginning of the year, the company made the following Variable in verhead direct laber-bou During the year, Job 550 was started and completed. The following information is available with respect to this job hec tion base Required 1. Assume that Landen has historically used a planwide predetermined overhead with direct laboros Under this approach a Compute the plantidepredetermined overhead rate b. Compute the total manufacturing cost of Job 550. c. anden uses a martup percentage of 200% of its manufacturing cost what we price would SOP Under 2. Assume that Landen's contre believes that machine-hours is a beer location base than director approach a Compute the plantidepredetermined overhead rate Computer total manufacturing cost of Jobs c. Landen uses a markup percentage of 200% of its mancing on what ng price woud t Round your intermediate actions to 2 decimal places found your "Pretermined Overhead places and all the answers to the nearest whole dar) o 550 2 decimal Speedy Auto Repairs uses a job-order costing system. The company's direct mail contofreplacement parts in customer vehicles, and its direct labor consists of the mechanics'hourly wages. Speedy's overhead costindude roses such as the shop manager's salary depreciation of equipment s, insurance and magazine subscription and m ore The company applies all of its overhead costs to jobs based on director hours. At the beginning of the yeatade me following 1. Compute the predetermined overhead 2. During the year Me Wiesbrought in the vehicle to replace is b avaliable with respect to his job e sar and res. The following formation Compute Mr Wilkes total cost 2. Speedy establishes its seling prices using a markup percentage of 6% of its too cost, then how much would have changed

Answer 1

1. Plantwide predetermined Overhead Rate = $8.77 Per MY

Explanation;

The estimated total manufacturing overhead cost is computed as follows;

Estimated Fixed Manufacturing Overhead	$657,000
Estimated Variable manufacturing overhead;
$4.50 Per MY * 154,000 MHS	$693,000
Estimated Total Manufacturing Overhead Cost	$1,350,000

The Plant wide predetermined Overhead Rate is computed as follows;

Estimated Total Manufacturing Overhead	$1,350,000
Estimated Total Machine Hours	$154,000 MHS
Predetermined Overhead Rate	8.77

2. Total Manufacturing Cost = 871

Explanation;

Total Manufacturing Cost Assigned to Job too

Direct Material	$360
Direct Labor	$230
Manufacturing Overhead Applied ($8.77 * 32)	$281
Total Manufacturing Cost	$871

3. If job 400 includes 60 Units , what is the unit product cost for this year

Unit Product Cost = 15

Explanation;

The unit product cost of job too is computed as follows;  

Total Manufacturing Cost	$871
Number of Units in the job	60
Unit Product Cost	15

4. Selling Price Per Unit = 32

Explanation;

The selling price per Unit is computed as follows;

Total Manufacturing Cost	$871
Markup (120% of Manufacturing Cost)	$1,045
Selling Price for Job 400 (a)	$1,916
Number of Units in Job 400 (b)	60
Selling Price Per Unit( a/b)	$32