Managerial Accounting Moody Corporation uses a job-order costing system with a p

Question

Managerial Accounting

Moody Corporation uses a job-order costing system with a plantwide predetermined overhead rate based on machine-hours. At the beginning of the year, the company made the following estimates: Machine-hours required to support estimated production Fixed manufacturing overhead cost Variable manufacturing overhead cost per machine-hour 160,000 $652,000 $4.80 Required 1. Compute the plantwide predetermined overhead rate. 2. During the year, Job 400 was started and completed. The following information was available with respect to this job: Direct materials Direct labor cost Machine-hours used $ 390 $ 280 39 Compute the total manufacturing cost assigned to Job 400 3. If Job 400 includes 60 units, what is the unit product cost for this job? 4. If Moody uses a markup percentage of 130% of its total manufacturing cost, then what selling price per unit would it have established for Job 400?

Explanation / Answer

Req 1. Plantwide overheads rate per MH: Fixed Manufacturing Oh (652000/160000) 4.075 Variable Manufacturing OH per MH 4.8 OH rate per MH 8.875 Req 2. Cost of Job 400. Material 390 Labouur 280 Manufacturing OH (39 MH @ 8.875) 346 Total cost of Job 400. 1016 Req 3. Total cost of Job 400 1016 Divide: Number of units 60 Unit cost of Job 400. 16.93 Req 4. Unit cost per unit 16.93 Add: Markup (130% of 16.93) 22.01 Selling price per unit 38.94

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