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 157,000 $ 651,000 $ 4.20 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 $ 340 $ 280 37 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? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4

Answer 1

1) Predetermine overhead rate = (651000/157000)+4.20 = 8.35 per hour

2) Job Cost

Direct material	340
Direct labor	280
Overhead (37*8.35)	308.95
Total	928.95 or 929

3) Unit product cost = 929/50 = 18.58