Exercise 2-12 Computing Predetermined Overhead Rates and Job Costs [LO2-1, LO2-2, LO2-3]
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:
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|Machine-hours required to support estimated production || ||151,000 |
|Fixed manufacturing overhead cost ||$ ||650,000 |
|Variable manufacturing overhead cost per machine-hour ||$ ||4.50 |
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 ||$ ||390 |
|Direct labor cost ||$ ||210 |
|Machine-hours used || ||30 |
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?