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 153,000 $ 658,000 4.30 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: $ 380 $ 220 Direct materials Direct labor cost Machine-hours used 38 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 4 Required 3 Compute the plantwide predetermined overhead rate. (Round your answer to 2 decimal places.) Predetermined overhead rate per MH Required 2 > Required 1

Answer 1

1
Predetermined overhead rate	8.60	per MH	=4.3+(658000/153000)
2
Direct materials	380
Direct labor	220
Overhead applied	327		=38*8.60
Total manufacturing cost	927
3
Total manufacturing cost	927
Divide by Units	50
Unit product cost	19
4
Unit product cost	19
Add: Markup	23		=19*120%
Selling price per unit	42