Moody Corporation uses a joborder costing system with a plan

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: chine-hours required to support estimated production Fixed mantufacturing overhead cost Variable manufacturing overhead cost per machine-hour 100, 000 $650, 000 3. 00 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 S 450 210 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?

Solution

Answer

1.

Predetermined overhead rate

=manufacturing overhead/machine hour

=950000/100000

=9.5per mh

(overhead=fixed+veriable=650000+(100000*3) =950000)

2.

Manufacturing cost to job 400=

Direct material. 450

Direct labor. 210

Overhead.(40*9.5) 380

Total manufacturing cost =1040   

3.

Unit product cost =1040/52

=20per uni

4.

Selling price per unit=total cost +mark up

=1040+120%

=2288