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Gobor-101 Inc. uses a job-order costing system with a predetermined overhead rate using machine hours as the allocation base. The company made the following
Gobor-101 Inc. uses a job-order costing system with a predetermined overhead rate using machine hours as the allocation base. The company made the following estimates at the beginning of last year: Total machine-hours Total fixed manufacturing overhead cost Variable manufacturing overhead per machine-hour 30,500 $ 610,000 $ 6.00 Gobor-101 Inc. started and completed Job X291 last year. It recorded the following Information for Job X291: Number of units in the job Total machine-hours Direct materials Direct labor cost 10 30 $ 690 $ 1,370 The company uses a markup percentage of 40% of its total manufacturing cost in determining selling price. The selling price per unit the company would charge for Job X291 is closest to: (Round your calculations to 2 decimal places.) Multiple Choice $113.60 $754.00 $288.40 $397.60
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