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

Multiple Choice

Levron 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 $58,000, variable manufacturing overhead of $2.00 per machine-hour, and 20,000 machine-hours. The company has provided the following data concerning Job P978 which was recently completed:

-If the company marks up its unit product costs by 30% then the selling price for a unit in Job P978 is closest to:

A) $249.58
B) $229.58
C) $204.10
D) $52.98