Question
Lupo 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
Lupo 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 the following data:
Total machine-hours 32,100
Total fixed manufacturing overhead cost $ 577,800
Variable manufacturing overhead per machine-hour $ 5.00
Recently, Job T687 was completed with the following characteristics: Number of units in the job 10
Total machine-hours 30
Direct materials $ 595
Direct labor cost $ 1,190
If the company marks up its unit product costs by 40% then the selling price for a unit in Job T687 is closest to: (Round your intermediate calculations to 2 decimal places.)
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