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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
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 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 Required: Job C Job M $ 15,700 $ 9,200 $ 22,500 $ 9,400 2,700 8,300 2,100 600 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. Note: Do not round intermediate calculations. Selling price for Job C Selling price for Job M
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Step: 1
To calculate the selling prices for Job C and Job M we will need to follow these steps 1 Calculate the predetermined overhead rates for the Molding an...Get Instant Access to Expert-Tailored Solutions
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Step: 2
Step: 3
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