Moody Corporation uses a job-order costing system with a plantwide predetermined

Question

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:

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:

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 120% of its total manufacturing cost, then what selling price per unit would it have established for Job 400?

find- Predetermined overhead rate =

-total manufacturing cost=

-If Job 400 includes 60 units, what is the unit product cost for this job?

-If Moody uses a markup percentage of 120% of its total manufacturing cost, then what selling price per unit would it have established for Job 400?

Machine-hours required to support estimated production 155,000 Fixed manufacturing overhead cost $ 653,000 Variable manufacturing overhead cost per machine-hour $ 4.70

Explanation / Answer

Answer =1 Calculation of Predetermined recovery Rate Predetermined Recovery Rate = Total Fixed Manufaturing Overhead Cost / Machiene Hours Used Total Fixed Manufaturing Overhead Cost = 653000 Divide By "/" By Machiene Hours Used 155000 Predetermined Recovery Rate Per Hours                                     4.21 CALCULATION OF THE TOTAL MANUFACTURING COST FOR JOB 400 Particulrs JOB 400 Direct Materials $                                  390 Direct LabouR Cost $                                  220 Overhead Expenses Variable Manufacting Overhead $                            173.90 (37 Hrs X $ 4.70) Fixed Manufacturing Overhead $                            155.77 (37 Hrs X $ 4.21) Total Manufacturing Cost $                            939.67 Answer = 3 Calculation of Unit cost if the job 400 have 60 units Cost per unit = Total Cost of the job / Number of units in Job 400 Total Cost = $                            939.67 Divide By "/" By Total Units in Job = 60 Cost per unit $                              15.66 Answer = 4 Calculation of the selling price: Cost per unit = $                              15.66 Add: 120% Markup $                              18.79 ($ 15.66 X 120%) Selling price = $                              34.45

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