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Cull 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 total fixed manufacturing overhead cost of $552,000, variable manufacturing overhead of $2.30 per machine-hour, and 69,000 machine-hours.
The company has provided the following data concerning Job X455 which was recently completed: Number of units in the job 20
Total machine-hours 80
Direct materials$970
Direct labor cost$1,940 Problem 1: 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 calculations to 2 decimal places.)
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