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 151,000 $ 650,000 $ 4.10 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 $ 370 $ 290 35 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 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 Compute the plantwide predetermined overhead rate. (Round your answer to 2 decimal Predetermined overhead rate per MH

Answer 1

2) 1) Predetermined overhead rate Variable Overhead Rate 4.10 ADD: Fixed overhead Rate = (650000/151000) 4.30 Answer Predetermined overhead rate 8.40 Per DLH Unit Cost of the JOB 400 is Units Direct Material 370 Direct Labor Cost 290 MOH (35*8.40) 294 Total Manufacturing Cost 954 Total Manufacturing Cost 954 3) Units Cost if Job 400 Produces 50 19.08 4) Selling Price Per Units if Markup 120% Manufactruing Cost 954 Mark UP 1145 Total Sales Revenue 2099 Selling Price 2099/50 42 Answer