Question

cation 6 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: Auction 1 00, Machine-hours required to support estimated production Fixed manufacturing overhead cost Variable manufacturing overhead cost per machine-hour 650,eee $ 3.ee 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 $ 218 Compute the total manufacturing cost assigned to Job 400. 3. If Job 400 includes 52 units, what is the unit product cost for this job? 4. I Moody uses a markup percentage of 120% 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 1 Required 2 Required 3 Required 4 Compute the plantwide predetermined overhead rate. (Round your answer to 2 decimal places.) Prem ind overhead rate per MH

Answer 1

A. Machine Hours required for estimated production=100000 hrs

B. Fixed MOH cost = $650000

C. Variable MOH cost per machine hr = $3/ machine-hr

D. Fixed MOH cost = B/A = $650000/100000 = $6.5/ machine-hr

1. Predetermined OH rate = C+D =$ 9.5/ machine-hr

2. Total manufacturing cost assigned to Job 400

Particulars	Amount($)
Direct material	450
Direct labor	210
Overheads (40 hrs*$9.5)	380
Total Manufacturing costs	1040

3. If job include 52 units,

Unit Product Cost = Total Manufacturing costs/No. of units

= $1040/52 units

= $20

4. Selling price per unit = Unit product cost+ Markup

=$20+ 120% of manufacturing cost

= $20+ $20*120%

= $44.