In: Accounting
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 | 32,000 | |
Total fixed manufacturing overhead cost | $ | 352,000 |
Variable manufacturing overhead per machine-hour | $ | 3.00 |
Recently, Job T687 was completed with the following characteristics:
Number of units in the job | 10 | |
Total machine-hours | 40 | |
Direct materials | $ | 675 |
Direct labor cost | $ | 1,350 |
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.)
Garrison 16e Rechecks 2017-06-22, 2017-08-01
Multiple Choice
$283.50
$361.90
$103.40
$546.00
fixed Overhead rate = | 11.00 | per machine hr | ||
352000/32000 | ||||
Variable overhead rate = | 3 | per machine hr | ||
Computation of job cost | ||||
Material | $ 675.00 | |||
Labor | $ 1,350.00 | |||
Overhead = | $ 560.00 | |||
14*40 | $ 2,585.00 | |||
Mark up @ 40% | $ 1,034.00 | |||
Sales price - | $ 3,619.00 | |||
Number of units = | 10 | |||
Price per unit | $ 361.90 | |||
answer = | $ 361.90 | |||