Question

Item 6 Item 6 Mcewan Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on direct labor-hours. The company based its predetermined overhead rate for the current year on 21,000 direct labor-hours, total fixed manufacturing overhead cost of $163,800, and a variable manufacturing overhead rate of $3.30 per direct labor-hour. Job X941, which was for 50 units of a custom product, was recently completed. The job cost sheet for the job contained the following data: Total direct labor-hours 200 Direct materials $ 400 Direct labor cost $ 6,700 Required: Calculate the selling price for Job X941 if the company marks up its unit product costs by 20%. (Round your intermediate calculations and final answer to 2 decimal places.)

Answer 1

Solution: 11.10 per DLH Overhead rate=Estimated overhead/estimated DLH (163800+3.3*21000/21000 400.00 6,700.00 2,220.00 Direct material Direct labor Over head applied=200*11.10 Total cost / units Unit product cost Add : markup at 20% selling price per unit 9,320.00 50.00 186.40 37.28 223.68