Cull Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours. The company based predetermined overhead rate for the current year on total fixed manufacturing overhead cost of $458,800, variable manufacturing overhead of $3.00 p machine-hour, and 74,000 machine-hours. The company has provided the following data concerning Job X455 which was recently completed: Number of units in the job Total machine-hours Direct materials Direct labor cost $ 10 80 $ 780 1,560 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 calculationsa to 2 decimal places.)
Cull Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours. The company based predetermined overhead rate for the current year on total fixed manufacturing overhead cost of $458,800, variable manufacturing overhead of $3.00 p machine-hour, and 74,000 machine-hours. The company has provided the following data concerning Job X455 which was recently completed: Number of units in the job Total machine-hours Direct materials Direct labor cost $ 10 80 $ 780 1,560 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 calculationsa to 2 decimal places.)
Chapter4: Job Order Costing
Section: Chapter Questions
Problem 2PB: Rulers Company is a neon sign company that estimated overhead will be $60,000, consisting of 1,500...
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Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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