EXERCISE $3-14$ Computing Predetermined Overhead Rates and Job Costs

LO$3-1,$ LO$3-2,$ LO$3-3$

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:

Required:

Compute the plantwide predetermined overhead rate.

During the year, Job $400$ was started and completed. The following information was

available with respect to this job:

Compute the total manufacturing cost assigned to Job $400.$

If Job $400$ includes $52$ units, what is the unit product cost for this job?

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 $400?$

If Moody hired you as a consultant to critique its pricing methodology, what would you say?