Question
EXERCISE 212 Computing Predetermined Overhead Rates and Job Costs LO21, LO22, LO23 Moody Corporation uses a job-order costing system with a plantwide predetermined overhead rate
EXERCISE 212 Computing Predetermined Overhead Rates and Job Costs LO21, LO22, LO23
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 production | 100,000 |
Fixed manufacturing overhead cost | $650,000 |
Variable manufacturing overhead cost per machine-hour | $3.00 |
Required:
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Compute the plantwide predetermined overhead rate.
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During the year, Job 400 was started and completed. The following information was available with respect to this job:
Direct materials $450 Direct labor cost $210 Machine-hours used 40
Compute the total manufacturing cost assigned to Job 400.
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If Job 400 includes 52 units, what is the unit product cost for this job?
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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?
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If Moody hired you as a consultant to critique its pricing methodology, what would you say?
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