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Chapter 2 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 . During the year, Job 550 was started and completed. The following information is available with respect to this job: 1. Assume that Landen has historically used a plantwide predetermined overhead rate with direct labor- Required: 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. If 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 ? 3. Assume that Landen's controller is right about machine-hours being a more accurate overhead cost allocation base than direct labor-hours. If the company continues to use direct labor-hours as its only overhead cost allocation base what implications does this have for pricing jobs such as Job 550