Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Kluth Corporation has two manufacturing departments --Molding and Customizing. The company used the following data at the beginning of the year to calculate predetermined overhead

image text in transcribed

Kluth Corporation has two manufacturing departments --Molding 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 Molding Customizing Total 7,000 1,300 8,300 $18,200 $4,550 $22,750 $ 1.50 $ 3.00 During the most recent month, the company started and completed two jobs--Job C and Job M. There were no beginning inventories. Data concerning those two jobs follow: Direct materials Direct labor cost Molding machine-hours Customizing machine-hours Job C Job M $13,900 $7,800 $21,000 $7,800 1,250 5,750 800 500 Required: 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 20% on manufacturing cost to establish selling prices. Calculate the selling prices for Job C and for Job M. (Do not round intermediate calculations.) Selling price for Job C Selling price for Job M

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Principles Of External Auditing

Authors: Brenda Porter, David Hatherly, Jon Simon

3rd Edition

0470018259, 9780470018255

More Books

Students also viewed these Accounting questions

Question

8. Set goals that relate to practice as well as competition.

Answered: 1 week ago

Question

a. Did you express your anger verbally? Physically?

Answered: 1 week ago