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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 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: Machining 1,000 $ 4,800 Customizing 9,000 $ 23,400 Total 10,000 $ 28, 200 Estimated total machine-hours (MHS) Estimated total fixed manufacturing overhead cost 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 Inventorles. Data concerning those two jobs follow: Direct materials Direct labor cost Machining machine-hours Customizing machine-hours JobA $ 12,000 $ 20,700 700 3,600 Job 3 $ 7,700 $ 6,400 300 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 A is closest to: (Round your Intermediate calculations to 2 decimal places.)
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