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: Machine-hours required to support estimated production Fixed manufacturing overhead cost Variable manufacturing overhead cost per machine-hour 153,000 659,000 $ 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: s 400 Direct materials Direct labor cost Machine-hours used 300 32 es 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? Complete this question by entering your answers in the tabs below Required 1 Required 2 Required 3 Required 4 Compute the plantwide predetermined overhead rate. (Round your answer to 2 decimal places.) overhead rate per MH

Explanation / Answer

1. predetermined plant wide overhead rate = total manufacturing overhead cost / esitmated machine hours

here,

total manufacturing overhead = fixed manufacturing overhead + ( variable manufacturing overhead * estimated machine hours)

=> $659,000 + ($4.10 * 153,000)

=>$1,286,300.

predetermined overhead rate = $1,286,300 / 153,000

=>$8.41 per machine hour.

2. total manufacturing cost assigned to job 400.

3.unit product cost = total manufacturing cost / number of units

=>$969 / 60 units

=>$16.....(rounded off to nearest whole dollar).

4.if 120% on total manufacturing cost is the markup, then we shall have the following selling price:

cost price * markup percentage

=> $16 * 120%

=>$19..(rounded to nearest whole dollar)

direct materials $400 direct labour $300 overhead (machine hours * predetermined rate) =>(32*$8.41) $269.12 total manufacturing cost (rounded to nearest dollar) $969

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