Why Choose Us?
0% AI Guarantee
Human-written only.
24/7 Support
Anytime, anywhere.
Plagiarism Free
100% Original.
Expert Tutors
Masters & PhDs.
100% Confidential
Your privacy matters.
On-Time Delivery
Never miss a deadline.
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
157,000
Fixed manufacturing overhead cost
$
657,000
Variable manufacturing overhead cost per machine-hour
$
4.80
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
$
370
Direct labor cost
$
290
Machine-hours used
35
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?
Expert Solution
1.Computation of Predetermined Overhead Rate:
Predetermined Overhead Rate = ( Estimated Fixed Manufacturing Overhead Cost / Estimated Machine Hours ) + Estimated Variable Manufacturing Overhead Cost per Machine Hour
= ($657,000/157,000)+$4.80
= $4.18 + $4.80
= $8.98 per Machine Hour
2.Computation of Total Manufacturing Cost assigned to Job 400:
Direct materials = $370
Direct labor cost = $290
Manufacturing overhead applied = (35 machine hours * $8.98) = $314.46
Total manufacturing cost = $974.46
3.Computation of Unit Product Cost:
Unit Product Cost = Total Manufacturing Cost / Number of Units
= $974.46/ 60 units
Unit Product Cost = $16.24
4.Computation of Selling Price per Unit:
Selling Price per Unit = Unit Product Cost + Markup
= $16.24 + ($16.24*120%)
= $16.24 + $19.49
Selling Price per Unit = $35.73
Archived Solution
You have full access to this solution. To save a copy with all formatting and attachments, use the button below.
For ready-to-submit work, please order a fresh solution below.
