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, 000 653,000 5.00 Skipped 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: Print Direct materials Direct labor cost Machine-hours used $ 400 260 30 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 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 de rodetermined overhead rate. (Round your answer to 2 decimal places.)

Answer 1

Information is given in the Question

Machine hours	158000
Fixed manufacturing	$                                      653,000.00
Variable manufacturing overhead cost per machine hour	$                                                 5.00

1. Calculate predetermine overhead rate

Fixed manufacturing overhead	$ 653,000.00
Variable manufacturing overhead ($5*158000 machine hours)	$ 790,000.00
Total manufacturing costs	$ 1,443,000.00
Plantwide predetermined overhead is given below:
Total manufacturing overhead	$ 1,443,000.00
Total machine hours	158000
Pre-determine overhead rate(total manufacturing overhead/total machine hours)	$                                                 9.13

2. Total manufacturing cost applied to Job 400

Direct Materials	$                                             400.00
Direct Labor	$                                             260.00
Manufacturing overhead ($9.13*30(direct labor hours)	$                                             273.90
Total manufacturing cost assigned to job 400	$                                             933.90

3. Calculate the unit of production cost

Total manufacturing cost	$                                             933.90
No. of units in the job (60 Units)	60
Unit of production cost	15.57

4. Calculate the selling price per unit with 120% markup

Total manufacturing cost	$                                             933.90
Markup (130% of manufacturing cost)	$                                          1,214.07
Selling price for job 400	$                                          2,147.97
No. of units in job 400	60
Selling price per unit	$                                               35.80