Chapter 2: Job-Order Costing: Calculating Unit Product Cost

MCe 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 36,000 direct labor-hours, total fixed manufacturing overhead cost of $273,600, and a variable manufacturing overhead rate of $2.80 per direct labor-hour. Job X941, which was for 50 units of a custom product, was recently completed. The job cost sheet for the job contained the following data:

Total direct labor hours	400
Direct Materials	$800
Direct labor cost	$6,700

Calculate:

1.) Estimated total manufacturing overhead cost

2.) Predetermined overhead rate

3.) Overhead applied to Job X941

4.) Total cost of Job X941

5.) Unit product cost of Job X941

6.) Selling price for Job X941 if the company marks up its unit product costs by 20%. (Round intermediate calculations and final answer to 2 decimal places.

Number bank:

-$4,160

-$279.84

-$233.20

-$11,600

-$10.40 per direct

-$374,400