Just for the halibut, inc. Designs and manufactures custom made fishing rods. On june 1, it had one job started for misterjaw with a beginning work in process balance of $525. 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 $9 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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Parrain Parrain · Answer 1 · 2022-02-09T13:24:55+01:00

Based on the various costs and the markup percentage, the selling price would be $951.75.

= Direct labor hours x Rate per labor hour

= (75 / 15 per hour) x 9

= 5 x 9

= $45

= Beginning work in process + Direct labor + Direct material + Manufacturing overhead

= 525 + 75 + 60 + 45

= $705

= Manufacturing cost + ( 1 + markup costs)

= 705 x ( 1 + 35%)

= $951.75

In conclusion, the selling price is $951.75.

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