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please answer A, B, C on both 1 & 2 for it is 1 question. Landen Corporation uses a job-order costing system. At the beginning
please answer A, B, C on both 1 & 2 for it is 1 question.
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 Machine-hours required to support estimated production Fixed manufacturing overhead cost Variable manufacturing overhead cost per direct labor-hour Variable manufacturing overhead cost per machine-hour 140,000 70,000 $784,000 $ 2.09 $ 4.00 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 Machine hours $ 229 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. 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 labor-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 selling price would it establish for Job 550? Round your intermediate calculations to 2 decimal places. Round your "Predetermined Overhead Rete" answers to 2 decimal places and all other answers to the nearest whole dollar) Step by Step Solution
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