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   156,000 Fixed manufacturing overhead cost $ 659,000 Variable manufacturing overhead cost per machine-hour $ 4.40     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 $ 340 Direct labor cost $ 200 Machine-hours used   33     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?

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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   156,000
Fixed manufacturing overhead cost $ 659,000
Variable manufacturing overhead cost per machine-hour $ 4.40
 

 

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 $ 340
Direct labor cost $ 200
Machine-hours used   33
 

 

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 130% of its total manufacturing cost, then what selling price per unit would it have established for Job 400?

 

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