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 10e,eee 658,800 $3.0e 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 $ 450 s 218 40 Compute the total manufacturing cost assigned to Job 400 3. If Job 400 includes 52 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?

Explanation / Answer

working note:

overhead rate per machine hour = total overhead cost / total machine hours

=>(650,000 + 300,000) / 100,000

=>$9.50.

note 2: cost of job 400 = 450 + 210 + (40*9.50)

=>450 +210 + 380

=>$1,040.

requirement 3:

unit product cost = total job cost / number of units

=>$1,040 / 52

=>$20 per unit

requirement 4:

unit cost $20 add: markup @120% of cost ($20*120%) 24 selling price per unit $44

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