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2. RevampScamp uses a job-order costing system. It has two manufacturing departments - Fabrication and Assembly. RevampScamp started, completed, and sold only two trailers during
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RevampScamp uses a job-order costing system. It has two manufacturing departments - Fabrication and Assembly. RevampScamp started, completed, and sold only two trailers during January. The following information is available for January 2018: Fabrication Assembly Estimated Total Labor-Hours Used 20 15 Estimated Total Machine-Hours Used 30 50 Estimated Total Fixed Manufacturing Overhead $6,000 $7,000 Estimated Variable Manufacturing Overhead Per $20 per Labor-Hour Labor-Hour Estimated Variable Manufacturing Overhead Per $15 per Machine-Hour Machine-Hour Job A Job B Direct Materials $22,500 $24,500 Direct Labor Cost $2,500 $4,000 Actual Labor-Hours Used Fabrication 9 13 Assembly 23 28 Machine-Hours Used Fabrication 13 18 Assembly 6 Assume RevampScamp's accountant calculated its applied manufacturing overhead for Job A to be $70,000 and its applied manufacturing overhead for Job B to be $50,000. If RevampScamp establishes its selling prices using a markup percentage of 25% of its total job cost, then how much would it have charged for the two jobs? Multiple Choice $150,000 O $43,375 $218,125 O $216.875 RevampScamp turns regular Scamp trailers (very lightweight camping trailers) into fancy, high-end travel trailers. When thinking about Job 1 the renovation of a particular 13ft camper - which of the following is an indirect period cost? Multiple Choice Cost of wheels Depreciation on factory building Air conditioning factory Air conditioning administrative office buildingStep by Step Solution
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