Decorte 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 the following data: Total direct labor-hours 10,000 Total fixed manufacturing overhead cost $ 33,000 Variable manufacturing overhead per direct labor-hour $ 2.50 Recently, Job K332 was completed with the following characteristics: Number of units in the job 70 Total direct labor-hours 140 Direct materials $ 455 Direct labor cost $ 5,320 The unit product cost for Job K332 is closest to: (Round your intermediate calculations to 2 decimal places.)

$94.10 per unit

Explanation:

Total direct labor-hours 10,000

Total fixed manufacturing overhead cost $33,000

Variable manufacturing overhead per direct labor-hour $2.50

Job K332:

Number of units in the job 70

Total direct labor-hours 140

Direct materials $455

Direct labor cost $5,320

total variable overhead = $2.50 x 140 = $350

prorated fixed overhead = (total fixed overhead / total direct labor hours) x direct labor hours used = ($33,000 / 10,000) x 140 = $462

total product cost = direct labor + direct materials + variable overhead + prorated fixed overhead = $5,320 + $455 + $350 + $462 = $6,587

product cost per unit = $6,587 / 70 units = $94.10 per unit

the answer would be price fixing, hope it