Chapter 2: Job Order Costing

Ely Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on direct labor-hours. The company based its predetermined overhead rate for the current year on the following data:

Total direct labor-hours	30,000
Total fixed manufacturing overhead cost	$258,000
Variable manufacturing overhead per direct labor-hour	$ 2.00

Recently Job P49 was completed with the following characteristics:

Number of units in the job	50
Total direct labor-hours	250
Direct materials	$ 645
Direct labor cost	$10,000

Required: Calculate the selling price for Job P49 if the company marks up its unit product costs by 20%.