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

question 396

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 $433,100, variable manufacturing overhead of $2.20 per machine-hour, and 61,000 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 25% then the selling price for a unit in Job X455 is closest to: (Round your intermediate calculations to 2 decimal places.)

• A) $406.75
• B) $305.40
• C) $76.35
• D) $381.75

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Definitions:

Static Planning Budget

A budget based on the level of expected output before the period begins, and it does not change in response to actual activity levels.

Variable Costs

Expenses that change in proportion to the level of production or sales activities, such as raw materials and direct labor costs.

Actual Costs

The real costs incurred in the production of goods or the provision of services.

Revenue Variance

The difference between actual revenue and budgeted or forecasted revenue, indicating the performance of a business.