10.

Lupo 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 the following data:

Total machine-hours	32,500
Total fixed manufacturing overhead cost	$455,000
Variable manufacturing overhead per machine-hour	$ 5.00

Recently, Job T687 was completed with the following characteristics:

Number of units in the job	10
Total machine-hours	40
Direct materials	$ 710
Direct labor cost	$1,420

If the company marks up its unit product costs by 40% then the selling price for a unit in Job T687 is closest to: (Round your intermediate calculations to 2 decimal places.)

12.

Garza Corporation has two production departments, Casting and Customizing. The company uses a job-order costing system and computes a predetermined overhead rate in each production department. The Casting Departments predetermined overhead rate is based on machine-hours and the Customizing Departments predetermined overhead rate is based on direct labor-hours. At the beginning of the current year, the company had made the following estimates:

	Casting	Customizing
Machine-hours	25,000	24,000
Direct labor-hours	7,000	7,000
Total fixed manufacturing overhead cost	$145,000	$35,000
Variable manufacturing overhead per machine-hour	$ 1.10
Variable manufacturing overhead per direct labor-hour		$ 3.20

The estimated total manufacturing overhead for the Customizing Department is closest to: