Kalp Corporation has two production departments, Machining and Finishing. 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 Finishing Departments predetermined overhead rate is based on direct labor-hours. At the beginning of the current year, the company had made the following estimates:

	Machining		Finishing
Machine-hours		19,000		12,000
Direct labor-hours		2,000		8,000
Total fixed manufacturing overhead cost	$	136,800	$	69,600
Variable manufacturing overhead per machine-hour	$	1.80
Variable manufacturing overhead per direct labor-hour			$	3.20

During the current month the company started and finished Job K928. The following data were recorded for this job:

Job K928:	Machining		Finishing
Machine-hours		90		10
Direct labor-hours		30		50
Direct materials	$	775	$	415
Direct labor cost	$	630	$	1,050

If the company marks up its manufacturing costs by 20% then the selling price for Job K928 would be closest to: (Round your intermediate calculations to 2 decimal places.)

Garrison 16e Rechecks 2017-06-28, 2017-08-01

Multiple Choice

• $5,643.00

• $855.00

• $4,275.00

• $5,130.00

#2

Claybrooks Corporation has two manufacturing departments--Casting and Assembly. The company used the following data at the beginning of the year to calculate predetermined overhead rates:

	Casting		Assembly		Total
Estimated total machine-hours (MHs)		3,000		2,000		5,000
Estimated total fixed manufacturing overhead cost	$	17,700	$	5,800	$	23,500
Estimated variable manufacturing overhead cost per MH	$	1.50	$	2.20

Assume that the company uses a plantwide predetermined manufacturing overhead rate based on machine-hours. That predetermined manufacturing overhead rate is closest to:

Multiple Choice

• $4.70

• $6.48

• $3.70

• $7.40

#3

The following accounts are from last year's books of Sharp Manufacturing:

Raw Materials
Bal	0	(b)	156,800
(a)	171,000
	14,200

Work In Process
Bal	0	(f)	521,200
(b)	133,400
(c)	170,800
(e)	217,000
	0

Finished Goods
Bal	0	(g)	474,000
(f)	521,200
	47,200

Manufacturing Overhead
(b)	23,400	(e)	217,000
(c)	27,400
(d)	158,800
			7,400

Cost of Goods Sold
(g)	474,000

Sharp uses job-order costing and applies manufacturing overhead to jobs based on direct labor costs. What is the amount of direct materials used for the year?

Multiple Choice

• $133,400

• $171,000

• $170,800

• $156,800