Question
Sutter 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
Sutter 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 10,000 Total fixed manufacturing overhead cost $ 35,000 Variable manufacturing overhead per machine-hour $ 2.20 Recently, Job T369 was completed with the following characteristics: Number of units in the job 10 Total machine-hours 40 Direct materials $ 750 Direct labor cost $ 1,560 If the company marks up its unit product costs by 20% then the selling price for a unit in Job T369 is closest to: (Round your intermediate calculations to 2 decimal places.)
$324.56
$304.56
$50.76
$277.20
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