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 s 654,088 $ 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 340 240 34 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? 41f 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?

Answer 1

1)	Predetermined overhead rate
	Formula:
	Estimated manufacturing overhead/estimated machine hours
	Variable manufacturing overhead cost per machine hour							4.20
	Fixed manufacturing overhead cost per mh				(654000/153000)			4.27
	predetermined overhead rate							8.47	per MH
2)	Total manufacturing cost
						$
	Direct materials requistioned					340
	Direct labor cost					240
	Overhead applied		(8.47*34)			288
	Total manufacturing cost					868
3)	unit product cost of the job
	868/50
	17
4)	Selling price		17*130%
			22
answer to question 2 , 3 and 4 have been changed to whole numbers