Gobor-258 Inc. uses a job-order costing system with a predetermined overhead rate using machine hours as the allocation base. The company made the following estimates at the beginning of last year: Total machine-hours Total fixed manufacturing overhead cost Variable manufacturing overhead per machine-hour 31,800 $ 159,000 $ 2.00 Gobor-258 Inc. started and completed Job X274 last year. It reported the following information for Job X274: Number of units in the job 10 Total machine-hours 30 Direct materials $ 660 Direct labor cost $ 1,320 The company uses a markup percentage of 40% of its total manufacturing cost in determining selling price. The selling price per unit the company would charge for Job X274 is closest to: (Round your calculations to 2 decimal places.)
Gobor-258 Inc. uses a job-order costing system with a predetermined overhead rate using machine hours as the allocation base. The company made the following estimates at the beginning of last year: Total machine-hours Total fixed manufacturing overhead cost Variable manufacturing overhead per machine-hour 31,800 $ 159,000 $ 2.00 Gobor-258 Inc. started and completed Job X274 last year. It reported the following information for Job X274: Number of units in the job 10 Total machine-hours 30 Direct materials $ 660 Direct labor cost $ 1,320 The company uses a markup percentage of 40% of its total manufacturing cost in determining selling price. The selling price per unit the company would charge for Job X274 is closest to: (Round your calculations to 2 decimal places.)
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter1: Introduction To Cost Accounting
Section: Chapter Questions
Problem 11E: Leen Production Co. uses the job order cost system of accounting. The following information was...
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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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