Question

# Mcewan Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on...

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 42,000 direct labor-hours, total fixed manufacturing overhead cost of \$361,200, and a variable manufacturing overhead rate of \$2.40 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 200 Direct materials \$ 400 Direct labor cost \$ 5,900

Required:

Calculate the selling price for Job X941 if the company marks up its unit product costs by 20%. (Round your intermediate calculations and final answer to 2 decimal places.)

selling price per unit:

 Denominator Level of Activity 42,000 DLH Variable Overhead Cost (42,000 x \$2.40) \$100,800 Fixed Overhead Cost \$361,200 Total \$462,000 Predetermined overhead rate = Total budgeted Overhead/ Total budgeted hours \$462,000/42,000 \$11.00 Direct materials \$400 Direct labor cost \$5,900 Ovrehead applied (200 x \$11.00) \$2,200 Total manufacturing cost \$8,500 Add: Markup 20% \$1,700 Selling price for Job X941 \$10,200 Units \$50 Selling price per unit \$204.00

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