Question
Cull Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours. The company based its predetermined overhead rate for
Cull Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours. The company based its predetermined overhead rate for the current year on total fixed manufacturing overhead cost of $442,500, variable manufacturing overhead of $2.50 per machine-hour, and 59,000 machine-hours. The company has provided the following data concerning Job X455 which was recently completed:
Number of units in the job | 10 | |
Total machine-hours | 80 | |
Direct materials | $ | 870 |
Direct labor cost | $ | 1,740 |
If the company marks up its unit product costs by 20% then the selling price for a unit in Job X455 is closest to: (Round your intermediate calculations to 2 decimal places.)
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