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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 156,000Fixed manufacturing overhead cost $ 656,000Variable manufacturing overhead cost per machine-hour $ 4.90Required: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 $ 380Direct labor cost $ 220Machine-hours used 38Compute the total manufacturing cost assigned to Job 400.3. If Job 400 includes 50 units, what is the unit product cost for this job

User Bilge
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Answer:

Plant wide overhead absorption rate= $4.20

Total manufacturing cost = $945.9

Unit cost of job = $18.92

Step-by-step explanation:

Plant wide overhead absorption rate

= Budgeted overhead/Budgeted machine hours

= $656,000/156,000 machine hours

= $4.20

Total manufacturing cost of Job 400

= Direct material cost + Direct labour cost + Variable overheads + Fixed production overhead

= 380 + 220 + (38 × $4.90) +( 38× $4.20)

= $945.994

Unit cost of job 400

= Total manufacturing cost/ units of product

= $945.99/ 50 units

= $18.919

= $18.92

User Zar
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