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 $357,500, variable manufacturing overhead of $2.70 per machine-hour, and 55,000 machine-hours. The company has provided the following data concerning Job X455 which was recently completed: Number of units in the job 33 Total machine-hours 10 80 Direct materials Direct labor cost $ 890 $ 1,780 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.)
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 $357,500, variable manufacturing overhead of $2.70 per machine-hour, and 55,000 machine-hours. The company has provided the following data concerning Job X455 which was recently completed: Number of units in the job 33 Total machine-hours 10 80 Direct materials Direct labor cost $ 890 $ 1,780 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.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text: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 $357,500, variable manufacturing overhead of $2.70 per
machine-hour, and 55,000 machine-hours. The company has provided the following data concerning Job X455 which was recently completed:
Number of units in the job
33
Total machine-hours
10
80
Direct materials
Direct labor cost
$ 890
$ 1,780
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.)
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