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 157,000 658,000 $4.50 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 320 $ 270 36 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? 41f 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 4 Compute the plantwide predetermined overhead rate. (Round your answer to 2 decimal places.) per MH Required 1Required 2 Required 3 Predetermined overhead rate

Explanation / Answer

SOLUTION

(1)

Predetermined overhead rate = Estimated total manufacturing overhead / Estimated total machine-hours

= $1,364,500 / 157,000 = $8.70 per MH

(2)

(3) Unit product cost = Total manufacturing cost / Number of units in the job

= $903 / 50 = $18.06

Estimated Fixed manufacturing overhead $658,000 Estimated variable manufacturing overhead ($4.50 * 157,000) $706,500 Estimated total manufacturing overhead cost $1,364,500

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