Question
1 . Mickley Companys plantwide predetermined overhead rate is $23.00 per direct labor-hour and its direct labor wage rate is $11.00 per hour. The following
1. Mickley Company’s plantwide predetermined overhead rate is $23.00 per direct labor-hour and its direct labor wage rate is $11.00 per hour. The following information pertains to Job A-500:
Direct materials | $ | 260 |
Direct labor | $ | 55 |
Required:
1. What is the total manufacturing cost assigned to Job A-500?
2. If Job A-500 consists of 40 units, what is the unit product cost for this job?
2. 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 | 159,000 | |
Fixed manufacturing overhead cost | $ | 659,000 |
Variable manufacturing overhead cost per machine-hour | $ | 4.10 |
Required:
a. Compute the plantwide predetermined overhead rate.
b. During the year, Job 400 was started and completed. The following information was available with respect to this job:
Direct materials | $ | 340 |
Direct labor cost | $ | 280 |
Machine-hours used | 31 | |
Compute the total manufacturing cost assigned to Job 400.
c. If Job 400 includes 50 units, what is the unit product cost for this job?
d. 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?
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