Biology Forums - Study Force

Lupo 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	30,000
Total fixed manufacturing overhead cost	$ 252,000
Variable manufacturing overhead per machine-hour	$ 2.10

Recently, Job T687 was completed with the following characteristics:

Number of units in the job	10
Total machine-hours	30
Direct materials	$ 675
Direct labor cost	$ 1,050

If the company marks up its unit product costs by 40% then the selling price for a unit in Job T687 is closest to: (Round your intermediate calculations to 2 decimal places.)

▸ $81.60

▸ $305.60

▸ $285.60

▸ $241.50

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