bum 11 Checy 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 Variable manufacturing overhead cost per direct laborator Variable manufacturing overhead cost per machine-hour 169,000 00.000 1480.000 15.00 310.00 Book P References During the year, Job 550 was started and completed. The following information is available with respect to this job: Direct materials Direct labor cont Direct labor-hours Machine-hours $ 240 $ 233 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 Landen uses a markup percentage of 200% of its total manufacturing cost, what selling price would it establish for Job SS0? 2. Assume that Landen's controller belleves that machine-hours is a better allocation base thon Grect 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 selling price would it establish for Job 5502 (Round your intermediate calculations to 2 decimal places. Round your "Predetermined Overhead Rato" answers to 2 decimal places and all other answers to the nearest whole dollar) 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 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. c. If 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: a. Predetermined overhead rate b. Total manufacturing cost of Job 550 C. Selling price 2. Machine-hours: a. Predetermined overhead rate b. Total manufacturing cost of Job 550 C. Selling price per MH
