Question

Cull Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours. The company based its predetermined overhead rate for the current year on total fixed manufacturing overhead cost of $234,000, variable manufacturing overhead of $2.60 per machine-hour, and 30,000 machine-hours. The company has provided the following data concerning Job X455 which was recently completed: Number of units in the job Total machine-hours Direct materials Direct labor cost 20 80 $ 790 $1,580 If the company marks up its unit product costs by 20% then the selling price for a unit in Job X455 is closest to: (Round your intermediate calculations to 2 decimal places.)

Answer 1

Solution Total fixed mooufactwórg overhead = $ 234,000 Varelable manufactulog, overchead = $ 70.000 °C$2.60 poe 30,000 home Klate for Job 84558 No. of units Total machine hours 80 direct material $790 direct labour cost $ 1,580 Here, product cost per unit Direet material + abut louboure tout + Manufactwing olH cost Total units 790 + 1580 + 234000 + (2.60 X do horas) by 20%% 236,578 $ 14,829 20 Company marks up its unit product cost selling price = Product cost p.u. X 1.20 11, 829 X 1.20 > $14,194.8 $14,200 Z