A business absorbs overheads on the basis of hours worked on a specific job. If the overhead absorption rate has been calculated at $80 per hour and a job is estimated to take 40 hours. What price would be charged to the customer if the company's mark-up is 50%? a. $1,600 b. $1,200 ●c. $3,200 d. $4,800
A business absorbs overheads on the basis of hours worked on a specific job. If the overhead absorption rate has been calculated at $80 per hour and a job is estimated to take 40 hours. What price would be charged to the customer if the company's mark-up is 50%? a. $1,600 b. $1,200 ●c. $3,200 d. $4,800
Chapter4: Job Order Costing
Section: Chapter Questions
Problem 4TP: If a company bases its predetermined overhead rate on 100,000 machine hours, and It actually has...
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![A business absorbs overheads on the basis of hours worked on a specific job. If the overhead absorption rate has
been calculated at $80 per hour and a job is estimated to take 40 hours. What price would be charged to the
customer if the company's mark-up is 50%?
a. $1,600
b. $1,200
c. $3,200
d. $4,800](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ffac13f51-b6dc-45f0-b6eb-4b903a78b649%2F2f8daa95-2c7b-453f-afd6-2a76fc648791%2Fk9600w_processed.jpeg&w=3840&q=75)
Transcribed Image Text:A business absorbs overheads on the basis of hours worked on a specific job. If the overhead absorption rate has
been calculated at $80 per hour and a job is estimated to take 40 hours. What price would be charged to the
customer if the company's mark-up is 50%?
a. $1,600
b. $1,200
c. $3,200
d. $4,800
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