Answer:
The selling price for a unit in Job X455 is closest to a. $379.92
Explanation:
stimated total manufacturing overhead cost = Estimated total fixed manufacturing overhead cost + (Estimated variable overhead cost per unit of the allocation base × Estimated total amount of the allocation base)
= $358,400 + ($2.30 per machine-hour × 56,000 machine-hours)
= $358,400 + $128,800 = $487,200.
Predetermined overhead rate = Estimated total manufacturing overhead cost ÷ Estimated total amount of the allocation base
= $487,200 ÷ 56,000 machine-hours = $8.7 per machine-hour.
Overhead applied to a particular job
= Predetermined overhead rate × Amount of the allocation base incurred by the job
= $8.7 per machine-hour × 80 machine-hours = $696
Direct materials $810
Direct labor cost $1,620
Manufacturing overhead applied $696
Total cost of Job X455 (a) $3,126
Number of units (b) 10
Unit product cost (a) ÷ (b) $312.6
Markup (20% × $312.6) $62.52
Selling price $375.12
