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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 65,000 32,500 $195, eee $ 1.20 $ 2.40 During the year. Job 550 was started and completed. The following information is available with respect to this job: Direct materials Direct labor cost Direct labor-hours Machine-hours $ 250 5318 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. Q b. Compute the total manufacturing cost of Job 550. c. Landen uses a markup percentage of 200% of its total manufacturing cost, what selling price would it establish for Job 550? 2. Assume that London's controller believes that machine hours is a better allocation base than direct labor hours. Under this approach o. 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 vour intermediate calculations to 2 decimal places. Round vour Predetermined Overhead Rate answers to 2 decimal (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) por DLA 1 Direct labor hours Predetermined overhead rate by Total manufacturing cost of Job 550 Selling price 2 Machine hours a Prodotermined overhead rato Total manufacturing cost of Job 550 C Selling price per MH

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