Q4 Moody Corporation uses a job-order costing system with a plantwide predetermi
ID: 2332848 • Letter: Q
Question
Q4
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 158,000 $ 656,000 $ 4.10 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 300 210 39 Compute the total manufacturing cost assigned to Job 400. 3. If Job 400 includes 50 units, what is the unit product cost for this job? 4. If Moody uses a markup percentage of 110% of its total manufacturing cost, then what selling price per unit would it have established for Job 400?Explanation / Answer
Requirement 1
Calculation of Predetermined Overhead rate
(A)
Fixed manufacturing Overhead Cost
$ 656,000.00
(B)
Total Machine Hours
158000
(A/B)
Predetermined Overhead Rate
$ 4.15
Answer---- Predetermined Overhead $ 4.15 per machine Hour
Requirement 2
Schedule of Total Manufacturing Cost
Direct Material Cost
$ 300.00
Direct labor Cost
$ 210.00
Variable Manufacturing overheads ($ 4.10*39)
$ 159.90
Fixed Manufacturing overheads (39*$ 4.15)
$ 161.85*
Total Manufacturing Cost
$ 831.75
*Applied Fixed manufacturing Overheads
Answer ---- Total Manufacturing Cost $ 831.75
Requirement 3
Calculation on per unit Cost
(A)
Total manufacturing Cost
$ 831.75
(B)
Number of Units in JOB 400
50
(A/B)
Unit Product Cost
$ 16.64
Answer ---- Unit Product cost $ 16.64
Requirement 4
(A)
Unit Product Cost
$ 16.64
(B)
Markup
110%
(C )= AxB
Markup Amount
$ 18.30
(A+C)
Selling Price
$ 34.93
Selling Piece per Unit = $ 34.93
(A)
Fixed manufacturing Overhead Cost
$ 656,000.00
(B)
Total Machine Hours
158000
(A/B)
Predetermined Overhead Rate
$ 4.15
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