Exercise 3-14 Computing Predetermined Overhead Rates and Job Costs [LO3-1, LO3-2, LO3-3, LO3-7]

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		153,000
Fixed manufacturing overhead cost	$	658,000
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 following information was available with respect to this job:

Direct materials requisitioned	$	300
Direct labor cost	$	270
Machine-hours used		39

	Compute the total manufacturing cost assigned to Job 400.(Do not round intermediate calculations and round final answer to 2 decimal places.)

3-a.	During the year the company worked a total of 145,300 machine-hours on all jobs and incurred actual manufacturing overhead costs of $1,357,790. What is the amount of underapplied or overapplied overhead for the year?(Use the overhead rate determined in requirement 1.)