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Landen Corporation uses a job-order costing system. At the beginning of the year, the company made the follgwing estimates: Direct 1abor-hours reguired to support estinated production thachine-hours required to support estinated production Fixed manufactur ing overhead cost Variable manufactur ing overhead cost per direct 1abor-hour Variable manufactur ing overhead cost per machino-hour. 140,000 70,000 5724,000 82,00 During the year, Job 550 was started and completed. The following Information is avalloble with respect to this job: Direct enterials Direct Iabor cost Direct Labor -hours uachine -hours 8175 8225 15 Required: 1. Assume that Landen has historically used a plantwide predetermined overhead rate with direct labor-hours as the allocation base. 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 cstablish for Job 550 ? 2. Assume that Landen's controller belleves that machine-hours is a better allocation base than direct taborhours. 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 declmal places, Round your Predetermined overhead Rate answers to 2 declmal places and all other answers to the nearest whole dollar.)

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