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 rates

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 Molding Customizing Total Estimated total machine-hours (MHs) Estimated total fixed manufacturing overhead cost Estimated variable manufacturing overhead cost per MH 11,000 $38,500 $ 3.00 3,700 14,700 $14,430 $52,930 $ 5.00 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-hou Customizing machine-hours Job C Job M $16,800 $10,100 $23,500 $10,400 2,500 8,500 2,700 1,000 Required Assume that the company uses departmental predetermined overhead rates with machine-hours as the allocation base in botlh 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

Students also viewed these Accounting questions