Landen Corporation uses a job-order costing system. At the beginning of the year, the company made the following estimat

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Landen Corporation Uses A Job Order Costing System At The Beginning Of The Year The Company Made The Following Estimat 1 (58.09 KiB) Viewed 10 times

Landen Corporation uses a job-order costing system. At the beginning of the year, the company made the following estimates: Direct labor-hours required to support estimated production Machine-hours required to support estimated production Fixed manufacturing overhead cost Variable manufacturing overhead cost per direct labor- hour Variable manufacturing overhead cost per machine-hour Direct materials Direct labor cost Direct labor-hours Machine-hours During the year, Job 550 was started and completed. The following information is available with respect to this job: $ 201 $ 240 15 5 a. Compute the plantwide predetermined overhead rate. b. Compute the total manufacturing cost of Job 550. Required: 1. Assume that Landen has historically used a plantwide predetermined overhead rate with direct labor- hours as the allocation base. Under this approach: 125,000 62,500 $ 350,000 $ 3.80 $ 7.60 c. If Landen uses a markup percentage of 200% of its total manufacturing cost, what selling price would it establish for Job 550? 1. Direct labor-hours: 1a. Predetermined overhead rate 1b. Total manufacturing cost of Job 550 1c. Selling price 2. Machine-hours: 2a. Predetermined overhead rate 2b. Total manufacturing cost of Job 550 2c. Selling price 2. Assume that Landen's controller believes that machine-hours is a better allocation base than direct labor- hours. Under this approach: a. Compute the plantwide predetermined overhead rate. b. Compute the total manufacturing cost of Job 550. c. If Landen uses a markup percentage of 200% of its total manufacturing cost, what selling price would it establish for Job 550? (Round your intermediate calculations to 2 decimal places. Round your Predetermined Overhead Rate answers to 2 decimal places and all other answers to the nearest whole dollar.) per DLH per MH