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 154,000 Fixed manufacturing overhead cost $ 655,000 Variable manufacturing overhead cost per machine -hour $ 4.90 Required: Compute the plantwide predetermined overhead rate. During the year, Job 400 was started and completed. The following information pertains to this job: Direct materials $ 350 Direct labor cost $ 290 Machine - hours used 32 Compute the total manufacturing cost assigned to Job 400. If Job 400 includes 50 units, what is its unit product cost? If Moody uses a markup percentage of 120% of its total manufacturing cost, then what selling price per unit would it establish for Job 400 ?
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 154,000 Fixed manufacturing overhead cost $ 655,000 Variable manufacturing overhead cost per machine -hour $ 4.90 Required: Compute the plantwide predetermined overhead rate. During the year, Job 400 was started and completed. The following information pertains to this job: Direct materials $ 350 Direct labor cost $ 290 Machine - hours used 32 Compute the total manufacturing cost assigned to Job 400. If Job 400 includes 50 units, what is its unit product cost? If Moody uses a markup percentage of 120% of its total manufacturing cost, then what selling price per unit would it establish for Job 400 ?
Chapter1: Financial Statements And Business Decisions
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Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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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 154,000 Fixed manufacturing overhead cost $ 655,000 Variable manufacturing overhead cost per
machine -hour $ 4.90 Required: Compute the plantwide predetermined overhead rate. During the year, Job 400 was
started and completed. The following information pertains to this job: Direct materials $ 350 Direct labor cost $ 290
Machine - hours used 32 Compute the total manufacturing cost assigned to Job 400. If Job 400 includes 50 units, what
is its unit product cost? If Moody uses a markup percentage of 120% of its total manufacturing cost, then what selling
price per unit would it establish for Job 400 ?
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