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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 $266,000, variable manufacturing overhead of $2.20 per machine-hour, and 38,000 machine-hours. The company has provided the following data concerning Job X455 which was recently completed
| Number of units in the job | 10 | |
| Total machine-hours | 80 | |
| Direct materials | $ | 810 |
| Direct labor cost | $ | 1,620 |
| 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.)
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PLEASE SHOW YOUR WORK, THANK YOU Multiple Choice $379.92 $63.32 $316.60 $399.92 |
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Expert Answer
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| Statementshowing Computations | |
| Paticulars | Amount |
| Direct Material per unit= 810/10 | 81.00 |
| Direct Labour per unit= 1620/10 | 162.00 |
| Variable O/H per unit = 2.2*80/10 | 17.60 |
| Fixed Manu o/Hper unit = 266000/38000*8 | 56.00 |
| Total cost per unit | 316.60 |
| Mark up = 316.60*.20 | 63.32 |
| selling price for a unit in Job X455 | 379.92 |
