EXERCISE 2–12 Computing Predetermined Overhead Rates and Job Costs LO2–1, LO2–2, LO2–3 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 Direct materials Direct labor cost Machine-hours used page 94 Direct labor-hours 100,000 . $650,000 $3.00 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:
. . . . . . . . . . . . . . . $450 . . . . . . . . . . . . . . . $210 . . . . . . . . . . . . 40 Compute the total manufacturing cost assigned to Job 400.
3. If Job 400 includes 52 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?
5. If Moody hired you as a consultant to critique its pricing methodology, what would you say?