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 $497,700, variable manufacturing overhead of $2.70 per machine-hour, and 63,000 machine-hours. The company has provided the following data concerning Job X455 which was recently completed Number of units in the job Total machine-hours Direct materials Direct labor cost 20 80 $ 750 $1,500 If the company marks up its unit product costs by 25% then the selling price for a unit in Job X455 is closest to: (Round your intermediate calculations to 2 decimal places.) Multiple Choice O $38.73 O $218.63 O $154.90 O $193.63

Answer 1

Total Fixed manufacturing overhead		A			$497,700.00
Total Machine hours		B			63,000
Fixed Overhead absorption rate		C=A/B			$7.90
Variable Overhead absorption rate		D			$2.70
Total Overhead absorption rate		E=D+C			$10.60
Machine hours for Job X455		F			80
Overhead allocated to the job		G=E*F			$848.00
Materials		H			$750.00
Labor		I			$1,500
Total Cost for Job X455		J=G+H+I			$3,098.00
Markup		25%			$774.50
Total Selling price for the job		K			$3,872.50
Units in job X455		L			20
Per unit Selling price		K/L			$193.63