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:

Oligopoly

A market structure dominated by a few large firms, resulting in limited competition and often leading to higher prices for consumers.

Price Searchers

Firms or individuals who determine the price of their goods or services based on market conditions, often with some degree of market power.

Oligopolistic Industry

An industry structure characterized by a small number of firms dominating the market, often leading to strategic interactions in setting prices and output.

Collude

When two or more firms or entities agree to work together, typically secretly and illegally, to fix prices, rig bids, or form a monopoly to eliminate competition and increase profits.