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 157,000 Fixed manufacturing overhead cost $ 653,000 Variable manufacturing overhead cost per machine-hour $ 4.90 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 $ 360 Direct labor cost $ 300 Machine-hours used 31 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 120% of its total manufacturing cost, then what selling price per unit would it have established for Job 400?

To calculate plantwide predetermined overhead rate we must divide fixed overhead manufacturing cost by the quantity of machine hours estimated for production and then add the variable manufacturing overhead cost per machine hour (($653,000/157,000)+$4.9)=$9.06
Manufacturing cost to job 400 is direct materials+ direct labor cost+ machine hours used*plantwide predetermined overhead rate $360+$300+(31*$9.06)=$940.86
Unit cost is manufacturing cost/quantity $940.86/60=$15.68
Price is cost + mark up $15.68+($15.68*1.2)=$34.5

topeadeniran2 topeadeniran2 · Answer 2 · 2021-11-29T13:58:13+01:00

The plantwide predetermined overhead rate will be $9.06.

Based on the information given, the plantwide predetermined overhead rate will be:

= (653000 / 157000) + 4.90

= 9.06

The total manufacturing cost assigned to Job 400 will be:

= 360 + 300 + (31 × 9.06)

= 940.86

If Job 400 includes 60 units, the unit product cost for this job will be:

= 940.86/60

= $15.68

The selling price per unit that will be used for Job 400 will be:

= 15.68 × 1.2

= 34.5

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