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

question 11

Multiple Choice

Cull 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 $462,000, variable manufacturing overhead of $2.20 per machine-hour, and 60,000 machine-hours. The company has provided the following data concerning Job X455 which was recently completed: If the company marks up its unit product costs by 20% then the selling price for a unit in Job X455 is closest to: (Round your intermediate calculations to 2 decimal places.)

• A) $258.32
• B) $190.80
• C) $39.72
• D) $238.32

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Definitions:

Domestic Quantity

The amount of a product or service produced within a country's borders.

Demanded

Refers to the desire of consumers to purchase a good or service, coupled with the capacity to pay for it, at a certain price level.

Producer Surplus

Producer Surplus is the difference between what producers are willing to sell a good for and the actual price they receive, representing profit.

Equilibrium

A state in a market where supply equals demand, meaning there is no excess of goods or shortage, and prices are stable.