Cull Corporation Uses a Job-Order Costing System with a Single

Multiple Choice

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 $462,000, variable manufacturing overhead of $2.20 per machine-hour, and 60,000 machine-hours. The company has provided the following data concerning Job X455 which was recently completed:

-If the company marks up its unit product costs by 20% then the selling price for a unit in Job X455 is closest to:

A) $258.32
B) $190.80
C) $39.72
D) $238.32