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Assume a company started and completed numerous jobs during Julyone of which was Job 2. The company uses two departmental predetermined overhead rates. The rate
Assume a company started and completed numerous jobs during Julyone of which was Job 2. 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 ofJuIy is available for the company as a whole and for Jobs 2: Machining As sembly Estimated total fixed manufacturing overhead 3 49,000 $ 30,000 Estimated variable manufacturing overhead per machinehour $ 1.50 Estimated variable manufacturing overhead per direct laborhour $ 2.00 Estimated total machinehours to be used 12,000 Estimated total direct labor hours to be worked 10,000 Job z Machining Assembly Direct materials 5 650 $ 700 Direct labor S 200 S 900 Machinehours 40 Direct laborhours 60 Assume Job 2 contains 50 units and that the company uses a markup percentage of70% to establish its selling prices. What would be the selling price per unit for Job 2? Multiple Choice $95.98 $100.98 $110.98 $90.98 0 O O O
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