Landen Corporation uses job-order costing. At the beginning of the year, it made the following estimates:

Direct labor-hours required to support estimated production105,000Machine-hours required to support estimated production52,500Fixed manufacturing overhead cost$ 294,000Variable manufacturing overhead cost per direct labor-hour$ 3.00Variable manufacturing overhead cost per machine-hour$ 6.00

During the year, Job 550 was started and completed. The following information pertains to this job:

Direct materials$ 229Direct labor cost$ 293Direct labor-hours15Machine-hours5

Required:

1. Assume Landen has historically used a plantwide predetermined overhead rate with direct labor-hours as the allocation base. Under this approach:
   1. Compute the plantwide predetermined overhead rate.
   2. Compute the total manufacturing cost of Job 550.
   3. If Landen uses a markup percentage of 200% of its total manufacturing cost, what selling price would it establish for Job 550?
2. Assume Landens controller believes that machine-hours is a better allocation base than direct labor-hours. Under this approach:
   1. Compute the plantwide predetermined overhead rate.
   2. Compute the total manufacturing cost of Job 550.
   3. If Landen uses a markup percentage of 200% of its total manufacturing cost, what selling price would it establish for Job 550?