FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Transcribed Image Text:The JOC-10847 company uses a job-order costing system with a predetermined overhead rate using direct labor hours as the
allocation base. The company made the following estimates at the beginning of last year:
Direct labor-hours required for the estimated production
Fixed manufacturing overhead cost
Variable manufácturing overhead cost per direct labor-hour
153,000
$ 654,000
$ 4.60
The JOC-10847 company started and completed Product A989 last year. It recorded the following information for Product A989:
Direct materials
Direct labor cost
Direct labor hours
used
Number of units
produced
$ 330
$ 220
34 hours
50 units
The JOC-10847 company uses a markup percentage of 110% of its total manufacturing cost in determining selling price. The selling
price per unit the company would charge for Product A989 is closest to: (Carry out your calculations up to 2 decimal places)
O$ 33.17
O$ 14.19
O$ 31.44
O$ 29.81
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