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
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 | 100,000 |
Fixed manufacturing overhead cost | $650,000 |
Variable manufacturing overhead cost per machine-hour | $ 3.00 |
Required:
- Compute the plantwide predetermined overhead rate.
Predetermined overhead rate | Per MH |
2. During the year, Job 400 was started and completed. The following information was available with respect to this job:
Direct materials | $ 450 |
Direct labor cost | $ 210 |
Machine-hours used | 40 |
Compute the total manufacturing cost assigned to Job 400.
Total manufacturing cost |
3.If Job 400 includes 52 units, what is the unit product cost for this job?
Unit product cost |
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?
Selling price per unit |
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