Part 2:

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 95,000

Machine-hours required to support estimated production 47,500

Fixed manufacturing overhead cost $266,000

Variable manufacturing overhead cost per direct labor-hour $2.60

Variable manufacturing overhead cost per machine-hour $5.20

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

Direct materials $273

Direct labor cost $237

Direct labor-hours15

Machine-hours5

2.If I assume that Landen's controller believes that machine-hours is a better allocation base than direct labor-hours. Under this approach:

a. Please help me compute the plantwide predetermined overhead rate.

b. Please help me compute the total manufacturing cost of Job 550.

c. If I assume that Landen uses a markup percentage of 200% of its total manufacturing cost, Help me determine what the selling price would it establish for Job 550?