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 $458,800, variable manufacturing overhead of $3.00 per machine-hour, and 74,000 machine-hours. The company has provided the following data concerning Job X455 which was recently completed.
Number of units in the job 10
Total machine-hours 80
Direct materials $810
Direct labor cost $1,620
If the company marks up its unit product costs by 20% then the selling price for a unit in Job X455 is closest to:______.
a. $379.92.
b. $63.32.
c. $316.60.
d. $399.92.