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Sagot :
Answer:
Results are below.
Explanation:
To calculate the predetermined manufacturing overhead rate we need to use the following formula:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= (784,000 / 140,000) + 2
Predetermined manufacturing overhead rate= $7.6 per direct labor hour
Now, we can allocate costs to Job 550 and calculate the total cost:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Allocated MOH= 7.6*15= $114
Total cost= 114 + 175 + 225
Total cost= $514
Finally, the selling price:
Selling price= 514*1.2= $616.8
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