Question

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 $488,000, variable manufacturing overhead of $2.80 per machine-hour, and 61,000 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	$	880
Direct labor cost	$	1,760

If the company marks up its unit product costs by 20% then the selling price for a unit in Job X455 is closest to: (Round your intermediate calculations to 2 decimal places.)

Garrison 16e Rechecks 2017-06-22

Multiple Choice

• $175.20

• $35.04

• $230.24

• $210.24

Answer 1

Ans:$210.24

Statement showing Computations
Particulars	Amount
Direct Material per unit= 880/20	44.00
Direct Labour per unit= 1760/20	88.00
Variable O/H per unit = 2.80*80/20	11.20
Fixed Manu o/H per unit = 488,000/61,000*4	32.00
Total cost per unit	175.20
Mark up = 316.60*.20	35.04
selling price for a unit in Job X455	210.24