Question

A Ap 2T A A 40 Styles A L 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 Fxed manufacturing overhead cost Variable manufacturing overhead cost per machine-hour 159,000 $651,000 $4.90 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 $390 $200 39 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 110 % of its total manufacturing cost, then what selling price per unit would it have established for Job 400? If Moody uses a markup percentage of 110 % of its total manufacturing cost, then what selling price per unit would it have established for Job 400? (Round your intermediate calculations and final answer to the nearest whole dollar.) Selling price per unit s) Focus P W
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Answer 1

			Amount		Calculations
	Total fixed manufacturing overhead cost		$651,000
+	Total variable manufacturing overhead cost		$779,100		$4.90	×	159000	Machine hours
	Total manufacturing overhead cost		$1,430,100
/	Machine hours		159000
1	Plantwide Predetermined overhead rate		$8.99
	Direct materials		$          390
	Direct labor		$          200
	Manufacturing overhead applied		$          351		$8.99	×	39	Machine hours
2	Total manufacturing cost assigned to Job 400		$          941
	Total cost of Job 400    From calculation above		$          941
/	Number of units produced Unit product cost for Job 400		60
3	Unit product cost for Job 400		$      15.68
4	Computation of Selling price per unit for Job 400 :-
	Total manufacturing cost assigned to Job 400		$941
+	Markup (110% of Total manufacturing cost)		$1,035
	Sales Price for Job 400		$1,976
/	Number of units produced Unit product cost for Job 400		60
4	Selling price per unit for Job 400		$            33

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