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The JOC-48540 company uses a job-order costing system with a predetermined overhead rate using direct labor hours as the allocation base. The company made
The JOC-48540 company uses a job-order costing system with a predetermined overhead rate using direct labor hours as the allocation base. The company made the following estimates at the beginning of last year: Direct labor-hours required for the estimated production Fixed manufacturing overhead cost Variable manufacturing overhead cost per direct labor-hour 157,000 $ 658,000 $ 4.20 The JOC-48540 company started and completed Product A396 last year. It recorded the following information for Product A396: Direct materials Direct labor cost Direct labor hours used Number of units produced $ 370 $ 280 34 hours 50 units The JOC-48540 company uses a markup percentage of 120% of its total manufacturing cost in determining selling price. The selling price per unit the company would charge for Product A396 is closest to: (Carry out your calculations up to 2 decimal places) $ 42.78 $ 44.51 O $ 41.15 O $ 18.71
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