Moody Corporation uses a work order costing system with a predetermined plant-wide overhead rate based on machine
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Question:
Moody Corporation uses a work order costing system with a predetermined plant-wide overhead rate based on machine hours. The company made the following forecasts at the beginning of the year:
Machine hours required to support estimated production | 151.000 | |
Fixed overhead cost of production | $ | 657.000 |
Variable overhead cost per machine hour | $ | 4.90 |
Necessary:
1. Calculate the predetermined overhead rate across the facility.
2. In the 2nd year Job 400 was started and completed. The following information was available regarding this job:
Direct materials | $ | 310 |
direct labor cost | $ | 230 |
used machine-hour | 33 | |
Calculate the total production cost assigned to Job 400.
3. If job 400 contains 50 units, what is the unit product cost for this job?
4. If Moody used a profit margin percentage of 110% of the total cost of production, what selling price per unit would Job set for the 400?
Related Book For
Managerial Accounting
ISBN: 978-0077522940
15th edition
Authors: Ray Garrison, Eric Noreen, Peter Brewer
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