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

Multiple Choice

Kostelnik 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 $237,000, variable manufacturing overhead of $3.90 per machine-hour, and 30,000 machine-hours. The company has provided the following data concerning Job A496 which was recently completed:

-If the company marks up its unit product costs by 40% then the selling price for a unit in Job A496 is closest to:

A) $186.20
B) $272.28
C) $72.08
D) $252.28