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Help Problem 2-16 Plantwide Predetermined Overhead Rates: Pricing LO2-1, LO2-2, LO2-3) Landen Corporation uses a job-order costing system At the beginning of the year, the company made the foltowing estimates Direct labor-hours required to support estimated production Machine-hours required to support estimated production Pixed manufacturing overhead cost Variable manufacturing overhead cost per direct labor-hour Variable manufacturing overhead cost per machine-hour s 130, 000 6s, 000 $364, 000 $ 4.00 8.00 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 $253 $349 15 Required 1. Assume that Landen has historically used a piantwide predetermined overhead rote 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 o markup percentage or 200% of its total manufacturing cost, what selling price would it establish for Job 550?
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