Landen Corporation uses a job-order costing system. At the beginning of the year, the company made the following estimates: Direct laber-hours required to support estimated production Machine-hour's required to support estimated production Fixed wnufacturing overhead cost Variable manufacturing overhead cost per direct labor hour variable manufacturing overhead cost per machine-hour 125,000 62,50 $350,00 3.80 $ 7.60 During the year, Job 550 was started and completed. The following information is available with respect to this job. Direct materials Direct labor cost Direct labor hours Machine-hours 201 $240 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 e. If landen uses a markup percentage of 200% of its total manufacturing cost, what selling price would it establish for Job 5501 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 role. 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 Rete answers to 2 decimal places and all other answers to the nearest whole dollar) DUM 1. Direct labor hours a. Predetermined overhead rate b. Total manufacturing cost of Job 550 Selling price 2. Machine hours 1. Predetermined overhead rate b. Total manufacturing cost of Job 500 Seling per MH rporation uses a job order costing system. At the beginning of the year, the company made the following estimates: bor-hours required to support estimated production urs required to support estimated production ufacturing overhead cost wnufacturing overhead cost per direct labor-hour manufacturing overhead cost per machine-hour 125,00 62,50 $35e,eee 3.10 $ 7.60 year, Job 550 was started and completed. The following information is available with respect to this job: cerials or cost or-hours $ 291 $240 15 5 urs hat Landen has historically used a plantwide predetermined overhead rate with direct labor-hours as the allocation bas approach: the plantwide predetermined overhead rate. the total manufacturing cost of Job 550. uses a markup percentage of 200% of its total manufacturing cost, what selling price would it establish for Job 550? hat Landen's controller believes that machine-hours is a better allocation base than direct labor-hours. Under this the plantwide predetermined overhead rate. the total manufacturing cost of Job 550. uses a markup percentage of 200% of its total manufacturing cost, what selling price would it establish for Job 550? Intermediate calculations to 2 decimal places. Round your "Predetermined Overhead Rate onswers to 2 decimal all other answers to the nearest whole dollar.) br-hours: hined overhead rate ufacturing cost of Job 550 per DLH ce ours: per MH hned overhead rate ufacturing cost of Job 550
