Kostelnik 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 $237,000, variable manufacturing overhead of $3.90 per machine-hour, and 30,000 machine-hours. The company has provided the following data concerning Job A496 which was recently completed: Number of units in the job Total machine-hours Direct materials Direct labor cost 20 80 $ 500 $2,160 If the company marks up its unit product costs by 40% then the selling price for a unit in Job A496 is closest to: (Round your intermediate calculations to 2 decimal places.)
Kostelnik 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 $237,000, variable manufacturing overhead of $3.90 per machine-hour, and 30,000 machine-hours. The company has provided the following data concerning Job A496 which was recently completed: Number of units in the job Total machine-hours Direct materials Direct labor cost 20 80 $ 500 $2,160 If the company marks up its unit product costs by 40% then the selling price for a unit in Job A496 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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Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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Transcribed Image Text:Kostelnik 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 $237,000, variable manufacturing overhead of $3.90 per machine-hour, and
30,000 machine-hours. The company has provided the following data concerning Job
A496 which was recently completed:
Number of units in the job
Total machine-hours
Direct materials
Direct labor cost
20
80
$
500
$2,160
If the company marks up its unit product costs by 40% then the selling price for a unit in
Job A496 is closest to: (Round your intermediate calculations to 2 decimal places.)
Transcribed Image Text:If the company marks up its unit product costs by 40% then the selling price for a unit in
Job A496 is closest to: (Round your intermediate calculations to 2 decimal places.)
Multiple Choice
O
$186.20
O $272.28
O $72.08
$252.28
Jy
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