Res 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 Bachine-hours required to support estinated production Fixed manufacturing overhead cost Variable manufacturing overhead cost per direct labor-hour Variable manufacturing overhead cost per machine-hour 50,000 40,000 $ 240,000 $1.80 $3.00 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 Required: $207 $257 15 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 If Landen uses a markup percentage of 200% of its total manufacturing cost, what selling price would it establish for Job 5507 2. Assume that Landen's controller believes that machine-hours is a better allocation base than direct labor-hours. Under thes 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 Overheed Rate answers to 2 decimal places and all other answers to the nearest whole dollar.) 1. Direct labor hours 1a. Predetermined overhead rate S 520 per OLH 1b Total manufacturing cost of Job 550 464 Te Selling price S 928 2 Machine-hours 2a Predetermined overhead rate 9.20 per M 2b Total manufacturing cost of Job 550 s 464 2c Selling price) $ 920 Proy Next > Check my work