Answer:
Follows are the solution to the given points:
Explanation:
In point 1:
The pre-determined overhead rate value:
[tex]= (\frac{654,000}{155,000})+4.40 \\\\= 4.21+4.40\\\\= \$ 8.61 / MH[/tex]
In point 2:
Calculating the total manufacturing cost:
[tex]\text{Direct material} \to 390\\\\\text{Direct labor} \to 230\\\\\text{Manufacturing overhead} (36 \times 8.61) \to 309.96\\\\\text{Total manufacturing cost}\to 929.96[/tex]
In point 3:
The unit product cost:
[tex]= \frac{929.96}{60}\\\\ = \$15.49 / unit[/tex]
In point 4:
Calculating the selling price per unit:
[tex]= \$15.49+(\$15.49 \times 130\%)\\\\ =\$15.49 + 20.137 \\\\ = \$35.627 \approx \$36 / unit[/tex]