contestada

Mcewan Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on direct labor-hours. The company based its predetermined overhead rate for the current year on 48,000 direct labor-hours, total fixed manufacturing overhead cost of $307,200, and a variable manufacturing overhead rate of $2.80 per direct labor-hour. Job X941, which was for 50 units of a custom product, was recently completed. The job cost sheet for the job contained the following data: Total direct labor-hours 300 Direct materials $ 600 Direct labor cost $ 5,500 Required: Calculate the selling price for Job X941 if the company marks up its unit product costs by 20%. (Round intermediate calculations and final answer to 2 decimal places.)

Respuesta :

Answer:

Selling price= $10,632

Explanation:

First, we need to calculate the predetermined overhead rate:

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Predetermined manufacturing overhead rate= (307,200/48,000) + 2.8

Predetermined manufacturing overhead rate= $9.2 per direct labor hour

Job X941:

Total direct labor-hours 300

Direct materials $ 600

Direct labor cost $ 5,500

Now, we can determine the total cost of Job X941:

Total cost= 600 + 5,500 + 300*9.2

Total cost= $8,860

Finally, the selling price:

Selling price= 8,860*1.2

Selling price= $10,632

Q&A Education