Just for the Halibut, Inc. designs and manufactures custom made fishing rods. On June 1, it had one job started with a beginning Work in Process balance of $578578. During June the job was finished and sold. Direct labor for the job in June was $75 and direct materials used were $60. Direct laborers are paid a wage rate of $15 per hour and manufacturing overhead is applied to production at a rate of $99 per direct labor hour. The company marks up costs 35% to determine the selling price. What was the selling price of the job?

Question

Business

Morgan Underwood

12 September, 12:07

Just for the Halibut, Inc. designs and manufactures custom made fishing rods. On June 1, it had one job started with a beginning Work in Process balance of $578578. During June the job was finished and sold. Direct labor for the job in June was $75 and direct materials used were $60. Direct laborers are paid a wage rate of $15 per hour and manufacturing overhead is applied to production at a rate of $99 per direct labor hour. The company marks up costs 35% to determine the selling price. What was the selling price of the job?

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Answers (1)

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Abbigail · Answer 1

Price = $850,5

Explanation:

With the following information we need to calculate the price of the job:

Direct materials issued to production< = $60

Direct labor = $75

Manufacturing overhead = $99*direct hour=99*5=$495

Direct hours=$75/$15hour = 5hours

Total cost = 60+75+495 = $630

Price = total cost*1,35=$850,5