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Assume a company started and completed numerous jobs during July-one of which was Job Z. The company uses two departmental predetermined overhead rates. The rate
Assume a company started and completed numerous jobs during July-one of which was Job Z. The company uses two departmental predetermined overhead rates. The rate in the Machining Department is based on machine-hours and the rate in the Assembly Department is based on direct labor-hours. The following additional information from the month of July is available for the company as a whole and for Jobs Z: Estimated total fixed manufacturing overhead Machining $ 48,000 Assembly $30,000 Estimated variable manufacturing overhead per machine-hour Estimated variable manufacturing overhead per direct labor-hour Estimated total machine-hours to be used $ 1.50 $ 2.00 12,000 Estimated total direct labor hours to be worked 10,000 Job Z Direct materials Direct labor Machine-hours Direct labor-hours Machining $ 650 $ 200 Assembly $ 700 $ 900 40 60 Assume Job Z contains 50 units and that the company uses a markup percentage of 70% to establish its selling prices. What would be the selling price per unit for Job Z? Multiple Choice $95.98 $100.98 $110.98 $90.98
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