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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 150,000
Fixed manufacturing overhead cost $653,000
Variable manufacturing overhead cost per machine-hour$ 4.60 Required:
Problem 1. Compute the plantwide predetermined overhead rate.
Problem 2. During the year, Job 400 was started and completed. The following information was available with respect to this job: Direct materials$ 360
Direct labor cost$ 260
Machine-hours used31 Compute the total manufacturing cost assigned to Job 400.
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