Landen Corporation uses a joborder costing system. At the beginning of the year, the company made the following estimates:
During the year, Job was started and completed. The following information is available with respect to this job:
Requlred:
Assume that Landen has historically used a plantwide predetermined overhead rate with direct laborhours as the allocation base.
Under this approach:
a Compute the plantwide predetermined overhead rate.
b Compute the total manufacturing cost of Job
c If Landen uses a markup percentage of of its total manufacturing cost, what selling price would it establish for Job
Assume that Landen's controller believes that machinehours is a better allocation base than direct laborhours. Under this
approach:
a Compute the plantwide predetermined overhead rate.
b Compute the total manufacturing cost of Job
c If Landen uses a markup percentage of of its total manufacturing cost, what selling price would it establish for Job
Round your Intermedlate colculatlons to declmol places. Round your Predetermined Overheod Rate answers to declmal
places and all other answers to the nearest whole dollar.
