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Sagot :
Answer:
See below
Explanation:
We will first determine the overhead rate
= cost of manufacturing overhead / cost driver
We will distribute the cost driver which is machine hours
$159,000/32,000 = $4.97
$4.97 fixed + $3 = $8 predetermined overhead rate
We will now apply this to job machine hours
Job machine hours 30
Overhead: machine hours x
Predetermined rate = 30 × 8 = $240
Total cost $1,320 + $660 direct material + $240 overhead = $2,220
Then,
Unit cost = Total cost/ unit
= $2,220/10
= $222
Selling price
= cost + 40% cost
= $222 + $88.8
= $283.50
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