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 Required: 1. Compute the plantwide predetermined overhead rate. 2. During the year, Job 400 was started and completed. The following information pertains to this job: Direct materials Direct labor cost Machine-hours used Compute the total manufacturing cost assigned to Job 400. 3. If Job 400 includes 60 units, what is its unit product cost? 4. If Moody uses a markup percentage of 130% of its total manufacturing cost, then what selling price per unit would it establish for Job 400? Complete this question by entering your answers in the tabs below. Required 1 Required 2 $ 390 $ 240 34 Required 3 Predetermined overhead rate Required 4 Compute the plantwide predetermined overhead rate. Note: Round your answer to 2 decimal places. per MH 151,000 $ 652,000 $ 4.40 Required 1 Required 2
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 Required: 1. Compute the plantwide predetermined overhead rate. 2. During the year, Job 400 was started and completed. The following information pertains to this job: Direct materials Direct labor cost Machine-hours used Compute the total manufacturing cost assigned to Job 400. 3. If Job 400 includes 60 units, what is its unit product cost? 4. If Moody uses a markup percentage of 130% of its total manufacturing cost, then what selling price per unit would it establish for Job 400? Complete this question by entering your answers in the tabs below. Required 1 Required 2 $ 390 $ 240 34 Required 3 Predetermined overhead rate Required 4 Compute the plantwide predetermined overhead rate. Note: Round your answer to 2 decimal places. per MH 151,000 $ 652,000 $ 4.40 Required 1 Required 2
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text: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
Required:
1. Compute the plantwide predetermined overhead rate.
2. During the year, Job 400 was started and completed. The following information pertains to this job:
Direct materials
Direct labor cost
Machine-hours used
$ 390
$ 240
34
Compute the total manufacturing cost assigned to Job 400.
3. If Job 400 includes 60 units, what is its unit product cost?
4. If Moody uses a markup percentage of 130% of its total manufacturing cost, then what selling price per unit would it establish
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.
Note: Round your answer to 2 decimal places.
Predetermined overhead rate
151,000
$ 652,000
$ 4.40
per MH
< Required 1
Required 2 >
Expert Solution
Step 1: Introduce to Predetermined Overhead Rate
Predetermined Overhead Rate :— It is the rate used to allocate manufacturing overhead cost to cost object under traditional costing method. It is calculated by dividing estimated manufacturing overhead cost by estimated usage of cost allocation base. Applied overhead is calculated by multiplying predetermined overhead rate by actual usage of cost allocation base.
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