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85,000 42,500 Landen Corporation uses a job-order costing system. At the beginning of the year, the company made the following estimates: Direct labor-hours required to

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85,000 42,500 Landen Corporation uses a job-order costing system. At the beginning of the year, the company made the following estimates: Direct labor-hours required to support estimated production Machine-hours required to support estimated production Fixed manufacturing overhead cost $ 238,000 Variable manufacturing overhead cost per direct labor-hour Variable manufacturing overhead cost per machine-hour. $ 4.40 During the year, Job 550 was started and completed. The following information is available with respect to this job: $ 2.20 Direct materials Direct labier cost Direct labor-hours Machine-hours $ 200 $ 334 15 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 a. Compute the plantwide predetermined overhead rate. b. Compute the total manufacturing cost of Job 550. c. If Londen 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. c. If Landen uses a markup percentage of 200% of its total manufacturing cost, what seling 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) por DLH 1. Direct labor hours: 1a. Predetermined overhead role 16. Total manufacturing cost of Job 550 10. Selling price 2 Machine hours: 20 Predetermined overhead rate 26. Total manufacturing cost of Job 550 20. Selling price per MH

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