EXERCISE 2-12 Computing Predetermined Overhead Rates and Job Costs [ LO2-1, LO2-2, O2-3 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: 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: Compute the total manufacturing cost assigned to Job 400. 3. If Job 400 includes 52 units, what is the unit product cost for this job? 4. 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? 5. If Moody hired you as a consultant to eritique its pricing methodology, what would you say? EXERCISE 2-10 Applying Overhead Cost to a Job [ LO2-2 Sigma Corporation applies overhead cost to jobs on the basis of direct labor cost. Job V, which was started and completed during the current period, shows charges of $5,000 for direct materials, $8,000 for direct labor, and $6,000 for overhead on its job cost sheet. Job W, which is still in process at year-end, shows charges of $2,500 for direct materials and $4,000 for direct labor. Required: 1. Should any overhead cost be applied to Job W at year-end? If so, how much? Explain. 2. How will the costs included in Job W's job cost sheet be reported within Sigma Corporation's financial statements at the end of the year? EXERCISE 2-9 Job-Order Costing and Decision Making LO2-1, LO2-2, [ LO2-3 Taveras Corporation is currently operating at 50% of its available manufacturing capacity. It 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: Required: 1. Compute the plantwide predetermined overhead rate. 2. During the year, Job P90 was started, completed, and sold to the customer for $2.500. The following information was available with respect to this job: Compute the total manufacturing cost assigned to Job P90. 3. Upon comparing Job P90's sales revenue to its total manufacturing cost, the company's chief financial officer said, "If this exact same opportunity walked through our front door tomorrow, I'd turn it down rather than making it and selling it for $2,500." a. Construct an argument (supported by numerical analysis) that refutes the chief financial officer's assertion. b. Construct an argument (accompanied by numerical analysis) that supports the chief financial officer's assertion