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