Question
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
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 Machining 1,000 $4,800 Customizing 9,000 $23,400 Total 10,000 $28,200 Estimated variable manufacturing overhead cost per machine-hour $ 1.10 $ 2.50 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 Customizing machine-hours Job A $12,000 $20,700 Job J $7,700 $6,400 700 3,600 300 5,400 Assume that the company uses departmental predetermined overhead rates with machine-hours as the allocation base in both production departments. Further assume that the company uses a markup of 50% on manufacturing cost to establish selling prices. The calculated selling price for Job J is closest to: (Round your intermediate calculations to 2 decimal places.) Multiple Choice $65,115 Assume that the company uses departmental predetermined overhead rates with machine-hours as the allocation base in both production departments. Further assume that the company uses a markup of 50% on manufacturing cost to establish selling prices. The calculated selling price for Job J is closest to: (Round your intermediate calculations to 2 decimal places.) Multiple Choice $65,115 $67720 $43.410 $21705
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