Question

26223-CZ company a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours. The 26223-CZ company based its predetermined overhead rate for the current year on the following data: Total machine-hours 50,000 Total fixed manufacturing overhead cost $ 400,000 Variable manufacturing overhead per machine-hour $ 6 Recently, Job D284 was completed with the following characteristics: Number of units in the job 40 Total machine-hours 100 Direct materials $ 750 Direct labor cost $ 2,750 If the company marks up its unit product costs by 60% then the selling price for a unit in Job D284 is closest to: (Round your intermediate calculations to 2 decimal places.)

Answer 1

$4,900

Step-by-step explanation:

Total variable overhead estimated

= $6 × 50,000

= $300,000

Therefore,

Total overhead estimated = Total variable overhead estimated + Total fixed overhead estimated

= $300,000 + $400,000

= $700,000

Predetermined overhead rate

= $700,000/50,000

= $14 per machine hour

Total overhead applied

= $14 × 100

= $1,400

Therefore,

Total job cost = Direct material + direct labor + total overhead

= $750 + $2,750 + $1,400

= $4,900