Answered

Join the IDNLearn.com community and start getting the answers you need today. Our community is here to provide the comprehensive and accurate answers you need to make informed decisions.

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 $6,400

Required:
Calculate the selling price for Job X941 if the company marks up its unit product costs by 20%.

Sagot :

Answer:

$234.24 per unit

Explanation:

The computation of the selling price for Job X941 is shown below:

But before that following calculations need to be determined

The Predetermined overhead rate is

= Variable overhead per DLH + Fixed overhead per DLH

= $2.80 + ($307,200 ÷ 48,000)

= $9.2 per DLH

Now the Total cost of Job X941 is

= Direct materials + Direct labor + Overhead applied

= $600 + $6,400 + (300 × $10)

= $9,760

 And, finally

The Selling price per unit of Job X941 is

= Unit product costs × 120%

= ($9,760 ÷ 50) × 120%

= $234.24 per unit

We appreciate every question and answer you provide. Keep engaging and finding the best solutions. This community is the perfect place to learn and grow together. IDNLearn.com is your source for precise answers. Thank you for visiting, and we look forward to helping you again soon.