Question
Moody Corporation uses a job-order costing system with a plantwide predetermined overhead rate based on machine-hours. At the beginning of the year, the company made
Moody Corporation uses a job-order costing system with a plantwide predetermined overhead rate based on machine-hours. At the beginning of the year, the company made the following estimates:
Machine-hours required to support estimated production, Fixed manufacturing overhead cost and Variable manufacturing overhead cost per machine-hour
1. compute the plantwide predetermined overhead rate
2. During the year, Job 400 was started and completed. The following information was available with respect to this job:
direct materials $350
Direct labor cost: $230
Machine-hours used: 38 compute the total manufacturing cost assigned to Job 400.
3. If Job 400 includes 60 units, what is the unit product cost for this job?
4. If Moody uses a markup percentage of 120% of its total manufacturing cost, then what selling price per unit would it have established for job 400?
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