Answer:
Results are below.
Explanation:
<u>First, we need to calculate the predetermined overhead rate:</u>
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= (624,000/80,000) + 3.1
Predetermined manufacturing overhead rate= $10.9 per machine hour
Job M598:
Number of units in the job 60
Total machine-hours 300
Direct materials $645
Direct labor cost $9,000
Total cost= 645 + 9,000 + 300*10.9
Total cost= $12,915
Unitary cost= 12,915/60= $215.25
<u>Finally, the selling price per unit:</u>
Selling price= 215.25*1.4= $301.35