If the company marks up its unit product costs by 40% then the selling price for a unit in Job A496 is closest to:

A) $186.20
B) $272.28
C) $72.08
D) $252.28

We need to calculate the selling price for a unit in Job A496. Let the unit product cost be x.
After marking up by 40%, the selling price will be 1.4x.
From the information given in the question, we do not know what the actual unit product cost is, so we cannot directly calculate the selling price.
Therefore, we need to use the answer choices to back-calculate the unit product cost using the marked-up selling price:
Option A: Selling price = $186.20 --> x = $133.00 (approximately)
Option B: Selling price = $272.28 --> x = $194.49 (approximately)
Option C: Selling price = $72.08 --> x = $51.49 (approximately)
Option D: Selling price = $252.28 --> x = $180.20 (approximately)
Out of these options, only Option D has a reasonable unit product cost that is consistent with the question (i.e. not too high or too low). Therefore, the best choice is D.

Estimated total manufacturing overhead cost = Estimated total fixed manufacturing overhead cost + (Estimated variable overhead cost per unit of the allocation base × Estimated total amount of the allocation base)= $237,000 + ($3.90 per machine-hour × 30,000 machine-hours)= $237,000 + $117,000 = $354,000
Predetermined overhead rate = Estimated total manufacturing overhead cost ÷ Estimated total amount of the allocation base = $354,000 ÷ 30,000 machine-hours = $11.80 per machine-hour
Overhead applied to a particular job = Predetermined overhead rate x Amount of the allocation base incurred by the job = $11.80 per machine-hour × 80 machine-hours = $944 Reference: CH02-Ref23
Halbur Corporation has two manufacturing departments--Machining and Customizing.The company used the following data at the beginning of the year to calculate predetermined overhead rates: During the most recent month, the company started and completed two jobs--Job C and Job J.There were no beginning inventories.Data concerning those two jobs follow: