Question
Company A manufactures custom-made products. On January 1 the company received an order from Customer 1. The job was completed and sold in January. During
Company A manufactures custom-made products. On January 1 the company received an order from Customer 1. The job was completed and sold in January. During the month, $45 of direct labor materials were requisitioned and 6.25 direct labor hours were logged for the job. The companys direct laborers are paid a rate of $8 per direct labor hour.
At the beginning of the year, the company estimated total manufacturing costs of $225,000 and total labor hours of 75,000. Manufacturing overhead is applied to jobs based on direct labor hours logged.
The sales price changed to Customer 1 was plus 60%. What was the selling price of the product?
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