Question

Just for the​ Halibut, Inc. designs and manufactures custom made fishing rods. On June​ 1, it had one job started with a beginning Work in Process balance of ​$578578. During June the job was finished and sold. Direct labor for the job in June was​ $75 and direct materials used were​ $60. Direct laborers are paid a wage rate of​ $15 per hour and manufacturing overhead is applied to production at a rate of ​$99 per direct labor hour. The company marks up costs​ 35% to determine the selling price. What was the selling price of the​ job?

Answer 1

Price= $850,5

Step-by-step explanation:

With the following information we need to calculate the price of the job:

Direct materials issued to production<= $60

Direct labor= $75

Manufacturing overhead= $99*direct hour=99*5=$495

Direct hours=$75/$15hour= 5hours

Total cost= 60+75+495= $630

Price= total cost*1,35=$850,5