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:

$250

$ 318

15

5

65,000

32,500

$195,000

1.20

2.40

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 establish for Job 550?

1. Direct labor-hours:

a. Predetermined overhead rate

b. Total manufacturing cost of Job 550

c. Selling price

2.

Machine-hours:

a. Predetermined overhead rate

b. Total manufacturing cost of Job 550

c. 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