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Kalp Corporation has two production departments, Customization and Machining. The company uses a job-order costing system and computes a predetermined overhead rate in each production

Kalp Corporation has two production departments, Customization and Machining. The company uses a job-order costing system and computes a predetermined overhead rate in each production department. The Machining departments predetermined overhead rate is based on machine hours and the Customization departments predetermined overhead rate is based on direct labor hours. The company has made the following estimates for the two production departments:

Machining Customization

Machine hours 16,000 11,000

Direct labor hours 18,000 6,000

Total fixed manufacturing overhead cost $92,800 $28,800

Variable manufacturing overhead per machine hour $1.20 -

Variable manufacturing overhead per labor hour - $5.00

The following data was recorded for Job 2110:

Machining Customization

Machine hours 50 40

Direct labor hours 60 30

Direct materials $430 $180

Direct labor cost $800 $540

1. What is the predetermined overhead rate for the Customization Department?

2. What is the predetermined overhead rate for the Machining Department?

3. What was the total cost of Job 2110?

4. If the company marks up its manufacturing costs by 40%, then what is the total selling price for Job 2110 (rounded to nearest dollar)?

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