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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 (Mis) Estimated total fixed manufacturing overhead cost Estimated variable manufacturing overhead cost per M Molding 12,000 $ 26,400 $ 1.501 Customizing 1,700 $ 6,290 $ 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 Holding machine-hours Customizing machine-hours Required: Job C $14,500 $ 21,400 Job H $ 8,200 $ 1,250 1,200 8,200 10,750 500 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 Total 13,700 $ 32,690
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