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 $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 completedNumber of units in the job 10Total machine-hours 80Direct materials $ 810Direct labor cost $ 1,620If 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.)PLEASE SHOW YOUR WORK, THANK YOUMultiple Choice$379.92$63.32$316.60$399.92

Answer 1

Answer:

379.92

Explanation:

Answer 2

Answer:

$379.92

Explanation:

units 10

machine hours 80

Direct Materials 810

Direct labor 1,620

Variable MO 80 x 2.2 = 176

Fixed MO 80 x 7 = 560

Total Cost for the Job: 3,166

Markup:

sales = cost ( 1 + 20%) = 3,166 x 1.2 = 3799.2

the job has 10 units.

Sales price per unit 379.92

Notes:

To calculate the fixed overhead rat e we divide the expected cost by the expected machine hours:

$\frac{Cost\: Of \:Manufacturing \:Overhead}{Cost \:Driver}= Overhead \:Rate$

266,000/38,000 = 7