Question

TB MC Qu. 2-135 Lupo Corporation uses a job-order costing ... Lupo 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 Total fixed manufacturing overhead cost Variable manufacturing overhead per machine- hour 32,600 $195,600 $ 4.00 Recently, Job T687 was completed with the following characteristics: Number of units in the 10 Job Total machine-hours Direct materials Direct labor cost $ 550 $1,100 If the company marks up its unit product costs by 40% then the selling price for a unit in Job T687 is closest to: Round your intermediate calculations to 2 decimal places.)

Answer 1

Predetermined Overhead rate = Variable + Fixed

= 4 + (195600/32600) = 10

Total production cost for 10 units

= (30*10)+550+1100 = 1950

Production cost per unit = 1950/10 = 195 per unit

Selling price = Production cost + markup

= 195+40%

= 273