XYZ Company uses a job order costing system and has set a pre-determined overhead rate of 125% of direct labor cost. Job #231 was charged with direct materials of $18,000 and with overhead of $20,000. Assume XYZ Company prices its jobs at 60% above manufacturing cost. Calculate the price charged to the customer for Job #231.

XYZ Company uses a job order costing system and has set a pre-determined overhead rate of 125% of direct labor cost. Job #231 was charged with direct materials of $18,000 and with overhead of $20,000. Assume XYZ Company prices its jobs at 60% above manufacturing cost. Calculate the price charged to the customer for Job #231.

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter4: Accounting For Factory Overhead

Section: Chapter Questions

Problem 9P: Channel Products Inc. uses the job order cost system of accounting. The following is a list of the...

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