Question
In: Accounting
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 unit would it have established for Job 400?
Solutions
Expert Solution
| 1) | Predetermined overhead rate | ||||||||
| Formula: | |||||||||
| Estimated manufacturing overhead/estimated machine hours | |||||||||
| Variable manufacturing overhead cost per machine hour | 5.00 | ||||||||
| Fixed manufacturing overhead cost per mh | (656000/151000) | 4.34 | |||||||
| predetermined overhead rate | 9.34 | per MH | |||||||
| 2) | Total manufacturing cost | ||||||||
| $ | |||||||||
| Direct materials requistioned | 310 | ||||||||
| Direct labor cost | 300 | ||||||||
| Overhead applied | (9.34*35MHrs) | 326.90 | |||||||
| Total manufacturing cost | 937 | ||||||||
| selling price = 937*130% | |||||||||
| 1218.1 | answer | ||||||||
| to get selling price per unit divide 1218 total selling price by units produced | |||||||||
ekkarill92 answered 3 years agoRelated 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
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
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
$...
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...
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