Job-Order Costing: Calculating Unit Product Costs 3. 4. If Job 400 includes 52 units, what is the unit product cost for this job? 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? If Moody hired you as a consultant to critique its pricing methodology, what would you say? 5. EXERCISE 313 Departmental Predetermined Overhead Rates L03-1, L03-2, L03-4 White Company has two departments, Cutting and Finishing. The company uses a job-order costing system and computes a predetermined overhead rate in each department. The Cutting Department bases its rate on machine-hours, and the Finishing Department bases its rate on direct labor-hours. At the beginning of the year, the company made the following estimates: 2. Assuming the assumptions about cost behavior from the first three quarters hold constant, the estimated total fixed manufacturing 3 4 what is the estimated unit product cost for the fourth quarter? How would you recommend stabilizing the company's unit product cost? Support your answer What is causing the estimated unit product cost to fluctuate from one quarter to the next? with computations. EXERCISE 3-12 Computing Predetermined Overhead Rates and Job Costs L03-1, L03-2, L03-3 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 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: 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: Direct materials Direct labor cost. Machine-hours used $450 $210 40 Compute the total manufacturing cost assigned to Job 400