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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

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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 140,000 Machine-hours required to support estimated 70,000 production Fixed manufacturing overhead cost $784,000 Variable manufacturing overhead cost per direct $ 2.00 labor-hour Variable manufacturing overhead cost per machine-hour $ 4.00 During the year, Job 550 was started and completed. The following information is available with respect to this job. $ 175 $225 Direct materials Direct labor cost Direct labor-hours Machine-hours 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 Landon uses a markup percentage of 200% of its total manufacturing cost, what selling price would it establish for Job 5502 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 5502 (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

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