Landen Corporation uses a job-order costing system. At the beginning of the yeat, the company made the following estimates: Direct labor-hours required to support estimated production Machine-hours required to support estimated production Fixed manufacturing overhead cost Variable manufacturing overhead cost per direct labor-hour Variable manufacturing overhead cost per machine-hour 90,000 45,000 $252,000 $ 2.40 $ 4.80 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 1abor-hours Machine-hours s 236 s 371 15 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, 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: K Prev 5 of 7 Next>