5.

Direct labor-hours required to support estimated production 65,000 Machine-hours required to support estimated production 32,500 Tixed manufacturing overhead cost $ 195,000 Variable manufacturing overhead cont per direct labor-hour $ 1.20 Variable manufacturing overhead cost per machine-hour $ 2.40 During the year, Job 550 was started and completed. The following information is available with respect to this job: Direct materials $250 Direct labor cost $ 318 Direct labor-hours 15 Machine-hours 5 Required: 1. Assume that Landen has historically used a plantwide predetermined overhead rate with direct labor-hours as the allocation base. Under this approach o Compute the plantwide predetermined overhead rate. b. Compute the total manufacturing cost of Job 550 c. If Landen uses a markup percentage of 200% of its total manufacturing cost, what selling price would it establish for Job 550? 2. Assume that Landen's controller believes that machine-hours is a better allocation base than direct labor-hours. Under this approach: a. Compute the plantwide predetermined overhead rate b. Compute the total manufacturing cost of Job 550 cf Landen uses a markup percentage of 200% of its total manufacturing cost, what selling price would it establish for Job 550? (Round your intermediate calculations to 2 decimal places. Round your predetermined Overhead Rate answers to 2 decimal places and all other answers to the nearest whole dollar.) per DLH 1. Direct labor-hours: 1a. Predetermined overhead rate 16. Total manufacturing cost of Job 550 16. Selling price 2. Machine hours 20. Predetermined overhead role 26. Total manufacturing cost of Job 550 2. Selling price DOMA