Compute the plantwide predetermined overhead rate.
During the year, Job 400 was started and completed. The following information pertains to this job:
Direct materials	$ 320
Direct labor cost	$ 200
Machine-hours used	32
Compute the total manufacturing cost assigned to Job 400.

If Job 400 includes 60 units, what is its unit product cost?
If Moody uses a markup percentage of 130% of its total manufacturing cost, then what selling price per unit would it establish for Job 400?


To solve the problem, let's break it down into parts and use the provided dataTo solve the problem, let's break it down into parts and use the provided 

### Part 1: Compute the plantwide predetermined overhead rate (POHR)
The predetermined overhead rate (POHR) is typically calculated using the formula:

\[
\text{POHR} = \frac{\text{Estimated Total Manufacturing Overhead}}{\text{Estimated Total Machine-Hours (MH)}}
\]

However, the problem does not provide the total estimated manufacturing overhead or the total machine hours. Please provide these values, or we can move ahead assuming you just want to solve the rest of the problem with the given information for Job 400.

### Part 2: Compute the total manufacturing cost assigned to Job 400

The total manufacturing cost assigned to a job is calculated using the formula:

\[
\text{Total Manufacturing Cost} = \text{Direct Materials} + \text{Direct Labor} + \text{Applied Overhead}
\]

Here’s what we know:
- Direct Materials for Job 400 = \$320
- Direct Labor for Job 400 = \$200
- Machine-Hours used = 32 hours

To compute the applied overhead, we need the predetermined overhead rate. Let's assume the POHR is provided (or once you supply it), we can use the formula:

\[
\text{Applied Overhead} = \text{POHR} \times \text{Machine-Hours used}
\]

Finally, plug in all these values to compute the total manufacturing cost.

### Part 3: Compute the unit product cost
If Job 400 includes 60 units, the unit product cost is calculated as:

\[
\text{Unit Product Cost} = \frac{\text{Total Manufacturing Cost}}{\text{Number of Units}}
\]

### Part 4: Selling price per unit
Moody uses a markup percentage of 130% of its total manufacturing cost to establish the selling price. The selling price per unit is calculated as:

\[
\text{Selling Price per Unit} = \text{Unit Product Cost} \times (1 + \text{Markup Percentage})
\]

Substitute the unit product cost and the markup percentage (130%) into the formula:

\[
\text{Selling Price per Unit} = \text{Unit Product Cost} \times (1 + 1.30)
\]

Once we have the total manufacturing cost from Part 2, we can proceed with these calculations.

### Do you have the predetermined overhead rate? Once we have that, I can calculate everything for you.

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In the meantime, here are some follow-up questions to extend your understanding:
1. How do different overhead allocation methods affect job costing?
2. What happens if overhead is underapplied or overapplied in a given period?
3. How would the calculation change if different jobs used significantly different machine hours?
4. How is a markup percentage determined in a manufacturing environment?
5. What are some common methods of improving cost estimation accuracy?

**Tip**: It’s essential to review both direct and indirect costs regularly to ensure accurate job costing, especially in dynamic manufacturing environments.

Compute the plantwide predetermined overhead rate. During the year, Job 400 was started and completed. The following information pertains to this job: Direct materials $320, Direct labor cost $200, Machine-hours used 32. Compute the total manufacturing cost assigned to Job 400. If Job 400 includes 60 units, what is its unit product cost? If Moody uses a markup percentage of 130% of its total manufacturing cost, then what selling price per unit would it establish for Job 400?

Learn how to compute the plantwide predetermined overhead rate, total manufacturing cost, unit product cost, and selling price per unit for Job 400 in a manufacturing setup. This guide covers essential formulas and concepts used in cost accounting, including overhead allocation and markup calculations. Suitable for undergraduate business or accounting students.

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