Subject: Cost Accounting

Chapter: Job Order Costing

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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 $462,000, variable manufacturing overhead of $2.20 per machine-hour, and 60,000 machine-hours. The company has provided the following data concerning Job X455 which was recently completed:

Number of units in the job	20
Total machine-hours	80
Direct materials	$ 940
Direct labor cost	$ 2,240

If the company marks up its unit product costs by 20% then the selling price for a unit in Job X455 is closest to:

a) $238.32

b) $258.32

c) $39.72

d) $190.80

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