1.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 production157,000Fixed manufacturing overhead cost$650,000Variable manufacturing overhead cost per machine-hour$4.90

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$310Direct labor cost$240Machine-hours used39

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 130% of its total manufacturing cost, then what selling price per unit would it have established for Job 400?

1. Compute the plantwide predetermined overhead rate. (Round your answer to 2 decimal places.)
2. Compute the total manufacturing cost assigned to Job 400.(Round your intermediate calculations to 2 decimal places and your final answer to the nearest dollar amount.)
3. If Job 400 includes60 units, what is the unit product cost for this job?(Round your answer to the nearest whole dollar.)
4. If 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?(Round your answer to the nearest whole dollar.)

2.Problem 2-19 Multiple Predetermined Overhead Rates; Applying Overhead [LO2-1, LO2-2, LO2-4]

High Desert Potteryworks makes a variety of pottery products that it sells to retailers. The company uses a job-order costing system in which departmental predetermined overhead rates are used to apply manufacturing overhead cost to jobs. The predetermined overhead rate in the Molding Department is based on machine-hours, and the rate in the Painting Department is based on direct labor-hours. At the beginning of the year, the company provided the following estimates:

DepartmentMoldingPaintingDirect labor-hours32,50058,200Machine-hours81,00031,000Fixed manufacturing overhead cost$162,000$523,800Variable manufacturing overhead per machine-hour$3.00-Variable manufacturing overhead per direct labor-hour-$5.00

Job 205 was started on August 1 and completed on August 10. The company's cost records show the following information concerning the job:

DepartmentMoldingPaintingDirect labor-hours88131Machine-hours39065Direct materials$948$1,180Direct labor cost$710$960

Required:

1. Compute the predetermined overhead rates used in the Molding Department and the Painting Department.

2. Compute the total overhead cost applied to Job 205.

3-a. What would be the total manufacturing cost recorded for Job 205?

3-b. If the job contained 33 units, what would be the unit product cost?

1. Compute the Predetermined Overhead Rates used in the Molding Department and the Painting Department.(Round your answers to 2 decimal places.)
2. Compute the total overhead cost applied to Job 205.(Round "Predetermined overhead rate" to 2 decimal places. Round other intermediate calculations and final answers to the nearest dollar amount.)
3. What would be the total manufacturing cost recorded for Job 205?(Round "Predetermined overhead rate" to 2 decimal places. Round other intermediate calculations and final answers to the nearest dollar amount.)
4. If the job contained 33 units, what would be the unit product cost?(Round "Predetermined overhead rate" to 2 decimal places. Round other intermediate calculations to the nearest dollar amount. Round your final answer to 2 decimal places.)