Question

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 $370,500, variable manufacturing overhead of $3.00 per machine-hour, and 57,000 machine-hours. The company has provided the following data concerning Job X455 which was recently completed:

Number of units in the job		10
Total machine-hours		80
Direct materials	$	750
Direct labor cost	$	1,500

If the company marks up its unit product costs by 20% then the selling price for a unit in Job X455 is closest to: (Round your intermediate calculations to 2 decimal places.)

Answer 1