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 157,000 Fixed manufacturing overhead cost $ 650,000 Variable manufacturing overhead cost per machine-hour $ 4.40 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 $ 320 Direct labor cost $ 230 Machine-hours used 37 Compute the total manufacturing cost assigned to Job 400. 3. If Job 400 includes 50 units, what is the unit product cost for this job

Instructions are below.

Explanation:

Giving the following information:

Estimated machine-hours= 157,000

Estimated fixed manufacturing overhead= $650,000

Variable manufacturing overhead cost per machine-hour $4.40

First, we need to calculate the predetermined overehad rate:

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Predetermined manufacturing overhead rate= (650,000/157,000) + 4.4

Predetermined manufacturing overhead rate= $8.54 per machine-hour

Job 400:

Direct materials $320

Direct labor cost $230

Machine-hours used 37

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Allocated overhead= 8.54*37= $315.98

Finally, we need to determine the unitary cost for Job 400:

Total cost= 320 + 230 + 315.98= $865.98

Unitary cost= 865.98/50= $17.32