Sutter 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 10,000
Total fixed manufacturing overhead cost $35,000
Variable manufacturing overhead per machine-hour $2.20
Recently, Job T369 was completed with the following characteristics:
Number of units in the job 10
Total machine-hours 40
Direct materials $750
Direct labor cost $1,560
If the company marks up its unit product costs by 20% then the selling price for a unit in Job T369 is closest to:
Answers: 1
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