Question

Help Save & EX LUDO 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 38,500 $610, eee $ 6.00 Recently, Job T687 was completed with the following characteristics 1e Number of units in the job Total machine-hours Direct materials Direct labor cost 3e $ 69e $1,370 If the company marks up its unit product costs by 40% then the selling price for a unit in places.) 1687 is closest to (Round your intermediate calculations to 2 decimal

Answer 1

	Job cost sheet
	Direct Material		$    690.00
	Direct Labor		$ 1,370.00
	OH		$    780.00	($ 26 x 30)
	Total manu. Cost		$ 2,840.00
	No. of units		10
	Cost per unit		$    284.00
Add:	Mark up @ 40%		$    113.60
	Selling price per unit		$    397.60

Note: If you find this incorrect, trying rounding off the amount

Workings:

Estimated total fixed manu. Cost				$ 610,000.00
Estimated total machine hours				30500
Fixed manu. Cost per hour				$           20.00
Variable manu. Cost per hour				$             6.00
Predetermined OH rate				$           26.00