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

Multiple Choice

Beans Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on direct labor-hours. The company based its predetermined overhead rate for the current year on total fixed manufacturing overhead cost of $162,000, variable manufacturing overhead of $2.80 per direct labor-hour, and 60,000 direct labor-hours. Recently, Job K818 was completed with the following characteristics:

-If the company marks up its unit product costs by 40% then the selling price for a unit in Job K818 is closest to:

A) $363.30
B) $103.80
C) $383.30
D) $324.80