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Cull Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on machine hours. The company based its predetermined overhead rate for the current year on total fixed manufacturing overhead cost of $497,700, variable manufacturing overhead of $2.70 per machine hour, and 63,000 machine hours. The company has provided the following data concerning Job X455 which was recently completed: Number of units in the job 20 Total machine-hours 80 Direct materials $750 Direct labor cost $1,500 If the company marks up its unit product costs by 25% then the selling price for a unit in Job X455 is: a. $38.73 b. $218.63 c. $154.90 d. $193.63
Cull Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on machine hours. The company based its predetermined overhead rate for the current year on total fixed manufacturing overhead cost of $497,700, variable manufacturing overhead of $2.70 per machine hour, and 63,000 machine hours. The company has provided the following data concerning Job X455 which was recently completed: Number of units in the job 20 Total machine-hours 80 Direct materials $750 Direct labor cost $1,500 If the company marks up its unit product costs by 25% then the selling price for a unit in Job X455 is: a. $38.73 b. $218.63 c. $154.90 d. $193.63
Final answer:Thesellingprice for a unit in Job X455, marked up by 25%, is $193.63.Explanation:To calculate the selling price for a unit in Job X455, we need todeterminethe total cost of producing the job and then apply a 25% markup.First, let's calculate the total manufacturing cost for Job X455:Direct Materials Cost = $750Direct Labor Cost = $1,500Variable Manufacturing Overhead (Machine Hours x Variable Overhead Rate) = 80 machine hours x $2.70 per machine hour = $216Fixed Manufacturing Overhead (PredeterminedOverheadRate x Actual Machine Hours) = ($497,700 / 63,000 machine hours) x 80 machine hours = $633.33Now, add all these costs together:Total Manufacturing Cost = $750 + $1,500 + $216 + $633.33 = $3,099.33Next, apply a 25% markup to the total manufacturing cost:Markup Amount = 25% of $3,099.33 = 0.25 x $3,099.33 = $774.83Finally, calculate the selling price:Selling Price = TotalManufacturingCost + Markup Amount = $3,099.33 + $774.83 = $3,874.16So, the selling price for a unit in Job X455, marked up by 25%, is $193.63.Learn more aboutSellingbrainly.com/question/33569432#SPJ11...