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 production85,000

Machine-hours required to support estimated production42,500

Fixed manufacturing overhead cost$ 238,000

Variable manufacturing overhead cost per direct labor-hour$ 2.20

Variable manufacturing overhead cost per machine-hour$ 4.40

During the year, Job 550 was started and completed. The following information is available with respect to this job:

Direct materials$ 208

Direct labor cost$ 334

Direct labor-hours15

Machine-hours5

Problem 2-16 (Algo) Plantwide Predetermined Overhead Rates; Pricing [LO2-1, LO2-2, LO2-3] Landen Corporation uses a job-order costing system. At the beginning of the year, the compony made the following estimates: During the year, Job 550 was started and completed. The following information is available with respect to this job: Required: 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 iabor-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 seling price would it establish for Job 550 ? (Round your intermediate calculations to 2 decimal places. Round your Predetermined Overhead Rate answers to 2 decimal ndares and all nther aneware to the nearest whole dnllarl 1. Ass ume that tanden has historicoliy used a plantwide prodetermined everhead rate with direct labor-hous as the aliocation base: Under this approdch: a. Compute the plantwide predetermined overhead rate b. Compute the total anufacturing cost of Job 550 . 6. If Landen uses a markup percentage of 200 \% of its total manufacturing eost what selling price would it estabish for Job 550 ? 2. Assume that Landen's controller believes that mochine-hours is a better aliocation base than direct labor hours. Under this approache a. Compute the plantwide predetermined overhead rate. b. Compute the total mantifacturing cost of Job 550. c. If Landen uses a markup percentage of 200% of its total manufacturing cost, what seiling price would it establish for Jab 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.)