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

question 284

Essay

Mcewan Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on direct labor-hours. The company based its predetermined overhead rate for the current year on 45,000 direct labor-hours, total fixed manufacturing overhead cost of $315,000, and a variable manufacturing overhead rate of $3.80 per direct labor-hour. Job X941, which was for 50 units of a custom product, was recently completed. The job cost sheet for the job contained the following data:
Required:Calculate the selling price for Job X941 if the company marks up its unit product costs by 20%. (Round intermediate calculations and final answer to 2 decimal places.)

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Definitions:

Knowledge and Services

Refers to the economic sector that relies on intellectual capabilities and expertise to provide information, expertise, and professional services.

Surplus Value

In Marxist theory, the value produced by the labor of workers over and above the wages paid to them, constituting profit for the capitalists.

Karl Marx

A 19th-century philosopher, economist, and political theorist best known for his ideas on capitalism, class struggle, and the development of socialist theory.

Raw Materials

Basic, unprocessed materials that are used as the foundation to produce goods, often including metals, oils, grains, and timber.