In: Accounting
Brown 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 $234,000, variable manufacturing overhead of $2.60 per machine-hour, and 30,000 machine-hours. The company has provided the following data concerning Job Z500 which was recently completed:
Number of units in the job |
20 |
Total machine-hours |
80 |
Direct materials |
$790 |
Direct labor cost |
$1,580 |
If the company marks up its unit product costs by 20% then what is the selling price for a unit in Job Z500?