Exercise 3-12 (Static) Computing Predetermined Overhead Rates and Job Costs [LO3-1, LO3-2, LO3-3]

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:

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	$	450
Direct labor cost	$	210
Machine-hours used		40

Compute the total manufacturing cost assigned to Job 400.

3. If Job 400 includes 52 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?

ompute the plantwide predetermined overhead rate. (Round your answer to 2 decimal places.)

Predetermined overhead rate

per MH

• Compute the total manufacturing cost assigned to Job 400. (Round intermediate calculations to 2 decimal places and final answer to the nearest dollar amount.)

  Total manufacturing cost

  If Job 400 includes 52 units, what is the unit product cost for this job? (Round your intermediate calculations and final answer to the nearest whole dollar.)

  	Unit product cost

  f 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? (Round your intermediate calculations and final answer to the nearest whole dollar.)

  Selling price per unit