The JOC-10847 company uses a job-order costing system with a predetermined overhead rate using direct labor hours as the allocation base. The company made the following estimates at the beginning of last year: Direct labor-hours required for the estimated production Fixed manufacturing overhead cost Variable manufácturing overhead cost per direct labor-hour 153,000 $ 654,000 $ 4.60 The JOC-10847 company started and completed Product A989 last year. It recorded the following information for Product A989: $ 330 $ 220 Direct materials Direct labor cost Direct labor hours used Number of units produced 34 hours 50 units The JOC-10847 company uses a markup percentage of 110% of its total manufacturing cost in determining selling price. The selling price per unit the company would charge for Product A989 is closest to: (Carry out your calculations up to 2 decimal places)

FINANCIAL ACCOUNTING
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ISBN:9781259964947
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Chapter1: Financial Statements And Business Decisions
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The JOC-10847 company uses a job-order costing system with a predetermined overhead rate using direct labor hours as the
allocation base. The company made the following estimates at the beginning of last year:
Direct labor-hours required for the estimated production
Fixed manufacturing overhead cost
Variable manufácturing overhead cost per direct labor-hour
153,000
$ 654,000
$ 4.60
The JOC-10847 company started and completed Product A989 last year. It recorded the following information for Product A989:
Direct materials
Direct labor cost
Direct labor hours
used
Number of units
produced
$ 330
$ 220
34 hours
50 units
The JOC-10847 company uses a markup percentage of 110% of its total manufacturing cost in determining selling price. The selling
price per unit the company would charge for Product A989 is closest to: (Carry out your calculations up to 2 decimal places)
O$ 33.17
O$ 14.19
O$ 31.44
O$ 29.81
Transcribed Image Text:The JOC-10847 company uses a job-order costing system with a predetermined overhead rate using direct labor hours as the allocation base. The company made the following estimates at the beginning of last year: Direct labor-hours required for the estimated production Fixed manufacturing overhead cost Variable manufácturing overhead cost per direct labor-hour 153,000 $ 654,000 $ 4.60 The JOC-10847 company started and completed Product A989 last year. It recorded the following information for Product A989: Direct materials Direct labor cost Direct labor hours used Number of units produced $ 330 $ 220 34 hours 50 units The JOC-10847 company uses a markup percentage of 110% of its total manufacturing cost in determining selling price. The selling price per unit the company would charge for Product A989 is closest to: (Carry out your calculations up to 2 decimal places) O$ 33.17 O$ 14.19 O$ 31.44 O$ 29.81
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