Question

10 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 154,000 $651.00 4. Se Skipped 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 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? Complete this question by entering your answers in the tabs below.

Answer 1

1)Total overhead = Variable overhead +Fixed overhead

                        = [4.5* 154000] + 651000

                        = 693000+651000

                        = 1344000

Predetermined overhead rate =Estimated total overhead /Estimated machine hours

                                           = 1344000 / 154000

                                            = $ 8.72727 per MH (ROUNDED TO 8.73)

2)

Direct material	330
Direct labor	220
Overhead applied (37*8.72727)	322.91
Total manufacturing cost	872.91 (rounded to 873)

3)

Unit product cost =Total manufacturing cost /number of units

                       = 873 /50

                     = $ 17.46 per unit

4)

Selling price =Total manufacturing cost [1+ markup %]

                   = 873 [1+1.3]

                   = $ 2007.90   (rounded to 2008 )