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 .

Fixed manufacturing overhead cost.

Variable manufacturing overhead cost per direct labor-hour

1,00,000

. $5,60,000

$2.00

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

$275

$250

20

Requirements:

Assume that Landen has historically used a plantwide predetermined overhead rate with direct

labor-hours as the allocation base.

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?