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 Machine-hours required to support estimated production 95,000 47,500 Fixed manufacturing overhead cost $ 266,eee Variable manufacturing overhead cost per direct labor-hour $ 2.60 Variable manufacturing overhead cost per machine-hour $ 5.20 During the year, Job 550 was started and completed. The following information is available with respect to this job: Direct materials $ 273 Direct labor cost $ 237 Direct labor-hours 15 Machine-hours 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, c. If Landen uses a markup percentage of 200% of its total manufacturing cost, who selling price would it establish for Job 550? 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 550? (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: 1a. Predetermined overhead rate 1b. Total manufacturing cost of Job 650 10. Selling price 2. Machine hours: Direct labor cost Direct labor-hours Machine-hours $ 237 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. cf Londen uses a markup percentage of 200% of its total manufacturing cost, what selling price would it establish for Job 550? 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 550? (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 1a. Predetermined overhead rate 16. Total manufacturing cost of Job 550 1. Selling price 2. Machine-hours: 2a. Predetermined overhead rate 2b Total manufacturing cost of Job 550 20. Selling price per MH
