Moody Corporation uses a job-order costing system with a plantwide predetermined overhead rate based on machine-hours....

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		151,000
Fixed manufacturing overhead cost	$	657,000
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	$	310
Direct labor cost	$	230
Machine-hours used		33

Compute the total manufacturing cost assigned to Job 400.

3. If Job 400 includes 50 units, what is the unit product cost for this job?

4. If Moody uses a markup percentage of 110% of its total manufacturing cost, then what selling price per unit would it have established for Job 400?

Solutions

Expert Solution

Answer to Part 1.

Predetermined Overhead Rate = Estimated Manufacturing Overhead / Estimated Machine Hour
Estimated Manufacturing Overhead = Fixed Manufacturing Overhead + Variable Manufacturing Overhead
Estimated Manufacturing Overhead = $657,000 + ($4.90 * 151,000)
Estimated Manufacturing Overhead = $657,000 + $739,900
Estimated Manufacturing Overhead = $1,396,900

Plantwide Predetermined Overhead rate = 1,396,900 / 151,000
Plantwide Predetermined Overhead rate = $9.25

Answer to Part 2.

Total Manufacturing Cost assigned to Job 400 = Direct Materials + Direct Labor + Manufacturing Overhead applied
Manufacturing Overhead applied = 33 * $9.25
Manufacturing Overhead applied = $305.25

Total Manufacturing Cost assigned to Job 400 = $310 + $230 + $305.25
Total Manufacturing Cost assigned to Job 400 = $845.25

Answer to Part 3.

Total Manufacturing Cost = $845.25
No. of Units in Job 400 = 50 Units
Unit Product Cost = 845.25 / 50
Unit Product Cost = $16.91

Answer to Part 4.

Total Manufacturing Cost = $845.25
Markup percentage = 110%
Selling Price for Job 400 = Total Manufacturing Cost + Markup
Selling Price for Job 400 = $845.25 + ($845.25 * 110%)
Selling Price for Job 400 = $845.25 + $929.78
Selling Price for Job 400 = $1,775.03

Selling Price per Unit = 1,775.03 / 50
Selling Price per Unit = $35.50

ekkarill92 answered 1 year ago

Next > < Previous

Related Solutions

Moody Corporation uses a job-order costing system with a plantwide predetermined overhead rate based on machine-hours....

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 $ 4.40 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 $...

Moody Corporation uses a job-order costing system with a plantwide predetermined overhead rate based on machine-hours....

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 100,000 Fixed manufacturing overhead cost $ 650,000 Variable manufacturing overhead cost per machine-hour $ 3.00 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 $...

Moody Corporation uses a job-order costing system with a plantwide predetermined overhead rate based on machine-hours....

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 152,000 Fixed manufacturing overhead cost $ 652,000 Variable manufacturing overhead cost per machine-hour $ 4.30 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 $...

Moody Corporation uses a job-order costing system with a plantwide predetermined overhead rate based on machine-hours....

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 151,000 Fixed manufacturing overhead cost $ 653,000 Variable manufacturing overhead cost per machine-hour $ 4.20 Required: A. Compute the plantwide predetermined overhead rate. B. During the year, Job 400 was started and completed. The following information was available with respect to this job: Direct materials $...

Moody Corporation uses a job-order costing system with a plantwide predetermined overhead rate based on machine-hours....

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 151,000 Fixed manufacturing overhead cost $ 656,000 Variable manufacturing overhead cost per machine-hour $ 5.00 Direct materials $ 310 Direct labor cost $ 300 Machine-hours used 35 QUESTION: If Moody uses a markup percentage of 130% of its total manufacturing cost, then what selling price per...

Moody Corporation uses a job-order costing system with a plantwide predetermined overhead rate based on machine-hours....

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 160,000 Fixed manufacturing overhead cost $ 655,000 Variable manufacturing overhead cost per machine-hour $ 4.60 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 $...

Moody Corporation uses a job-order costing system with a plantwide predetermined overhead rate based on machine-hours....

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 159,000 Fixed manufacturing overhead cost $ 653,000 Variable manufacturing overhead cost per machine-hour $ 4.10 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 $...

Moody Corporation uses a job-order costing system with a plantwide predetermined overhead rate based on machine-hours....

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 $ 658,000 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 $...

Moody Corporation uses a job-order costing system with a plantwide predetermined overhead rate based on machine-hours....

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 $ 651,000 Variable manufacturing overhead cost per machine-hour $ 4.60 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 $...

Moody Corporation uses a job-order costing system with a plantwide overhead rate based on machine-hours. At...

Moody Corporation uses a job-order costing system with a plantwide 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 158,000 Fixed manufacturing overhead cost $ 656,000 Variable manufacturing overhead cost per machine-hour $ 5.00 Required: 1. Compute the predetermined overhead rate. (Do not round intermediate calculations. Round your answer to 2 decimal places.) 2. During the year, Job 400 was started and completed. The...

Subjects