Bolander 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 the following data: Total machine-hours 70,000 Total fixed manufacturing overhead cost $ 294,000 Variable manufacturing overhead per machine-hour $ 2.30  Recently, Job M825 was completed with the following characteristics: Number of units in the job 20 Total machine-hours 80 Direct materials $ 665 Direct labor cost $ 1,840If the company marks up its unit product costs by 40% then the selling price for a unit in Job M825 is closest to:     $211.75     $231.75     $175.35     $60.50

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Bolander 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 the following data:

Total machine-hours 70,000
Total fixed manufacturing overhead cost $ 294,000
Variable manufacturing overhead per machine-hour $ 2.30
 
Recently, Job M825 was completed with the following characteristics:

Number of units in the job 20
Total machine-hours 80
Direct materials $ 665
Direct labor cost $ 1,840
If the company marks up its unit product costs by 40% then the selling price for a unit in Job M825 is closest to:
   
$211.75
   
$231.75
   
$175.35
   
$60.50
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