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Janicki Corporation has two manufacturing departments--Machining and Customizing. The company used the following data at the beginning of the year to calculate predetermined overhead
Janicki 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: Estimated total machine-hours (MHS) Estimated total fixed manufacturing overhead cost Estimated variable manufacturing overhead cost per MH Machining 1,000 $ 4,800 $ 1.10 Customizing 9,000 $ 23,400 $ 2.50 Total 10,000 $ 28,200 During the most recent month, the company started and completed two jobs--Job A and Job J. There were no beginning inventories. Data concerning those two jobs follow: Direct materials Direct labor cost Machining machine-hours Job A Job J $ 12,000 $ 7,700 $ 20,700 $ 6,400 700 3,600 300 5,400 Customizing machine-hours Assume that the company uses a plantwide predetermined manufacturing overhead rate based on machine-hours and uses a markup of 50% on manufacturing cost to establish selling prices. The calculated selling price for Job A is closest to: Note: Round your intermediate calculations to 2 decimal places. Multiple Choice $90,707 $27,487 $82,461 $54,974
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