Problem 216 Plantwide Predetermined overhead Rates; Pricing [L02-1, L02-2, L02-3] 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 80,000 40,00a $240,000 1.80 3.60 During the year, Job 550 was started and completed. The following information is available with respect to this job: Direct materials Direct labor cost $ 207 $ 257 15 Direct labor-hours Machine-hour 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. 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? (Round your intermediate calculations to 2 decimal places. Round your predetermined overhead Rate answers to 2 decimal places and all other answers to the nearest whole dollar.) 1. Direct labor-hours: per DLH I I apredetermined overhead rate bTotal manufacturing cost of Job 550 Selling price 2. Machine-hours apredetermined overhead rate bTotal manufacturing cost of Job 550 Selling price I per MH