Levron 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 $58,000, variable manufacturing overhead of $2.00 per machine-hour, and 20,000 machine-hours. The company has provided the following data concerning Job P978 which was recently completed:Number of units in the job20Total machine-hours80Direct materials$ 500Direct labor cost$ 2,640If the company marks up its unit product costs by 30% then the selling price for a unit in Job P978 is closest to:
A. $249.58
B. $52.98
C. $229.58
D. $204.10
Answer: C
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