Problem 2 18 (Algo) Plantwide Predetermined Overhead Rates Pricing LO2 1, LO2 2, LO2 3 Landen Corporation uses job order costing At the beginning of the year, it made the following estimates Direct labor hours required to support estimated production 100,000 Machine hours required to support estimated production 50,000 Fixed manufacturing overhead cost $ 280,000 Variable manufacturing overhead cost per direct labor hour $ 2 80 Variable manufacturing overhead cost per machine hour $ 5 60 During the year, Job 550 was started and completed The following information pertains to this job Direct materials $ 216 Direct labor cost $ 327 Direct labor hours 15 Machine hours 5 Required Assume Landen has historically used a plantwide predetermined overhead rate with direct labor hours as the allocation base Under this approach Compute the plantwide predetermined overhead rate Compute the total manufacturing cost of Job 550 If Landen uses a markup percentage of 200 of its total manufacturing cost, what selling price would it establish for Job 550 Assume Landens controller believes that machine hours is a better allocation base than direct labor hours Under this approach Compute the plantwide predetermined overhead rate Compute the total manufacturing cost of Job 550 If Landen uses a markup percentage of 200 of its total manufacturing cost, what selling price would it establish for Job 550 Note 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

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Problem 2-18 (Algo) Plantwide Predetermined Overhead Rates; Pricing [LO2-1, LO2-2, LO2-3] Landen Corporation uses job-order costing. At the beginning of the year, it made the

Problem 2-18 (Algo) Plantwide Predetermined Overhead Rates; Pricing [LO2-1, LO2-2, LO2-3]

Landen Corporation uses job-order costing. At the beginning of the year, it made the following estimates:

Direct labor-hours required to support estimated production	100,000
Machine-hours required to support estimated production	50,000
Fixed manufacturing overhead cost	$ 280,000
Variable manufacturing overhead cost per direct labor-hour	$ 2.80
Variable manufacturing overhead cost per machine-hour	$ 5.60

During the year, Job 550 was started and completed. The following information pertains to this job:

Direct materials	$ 216
Direct labor cost	$ 327
Direct labor-hours	15
Machine-hours	5

Required:

Assume Landen has historically used a plantwide predetermined overhead rate with direct labor-hours as the allocation base. Under this approach:
1. Compute the plantwide predetermined overhead rate.
2. Compute the total manufacturing cost of Job 550.
3. If Landen uses a markup percentage of 200% of its total manufacturing cost, what selling price would it establish for Job 550?
Assume Landens controller believes that machine-hours is a better allocation base than direct labor-hours. Under this approach:
1. Compute the plantwide predetermined overhead rate.
2. Compute the total manufacturing cost of Job 550.
3. If Landen uses a markup percentage of 200% of its total manufacturing cost, what selling price would it establish for Job 550?

Note: 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.