Question

33 Mcewa 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 38.000 direct labor-hours, total fored manufacturing overhead cost of $250,800, and a variable manufacturing overhead rate of $2.40 per direct laber-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 1 direct labores Direct materials Direct labor cost 5 50 SOUSA Required: Calculate the seling price for Job X941 if the company marks up its unit product costs by 20% (Round intermediate calculations and final answer to 2 decimal places.) Seiling price per unit

Answer 1

Predetermined Overhead rate = Variable + Fixed

= 2.40 + (250,800/38,000) = 9 per labor hour

Total Cost = 800+5800+(9*400) = 10,200

Cost per unit = 10,200/50 = 204 per unit

Selling price per unit = 204 + 20%

= 244.80