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Kluth Corporation has two manufacturing departments--Molding and Customizing. The company used the following data at thee beginning of the year to calculate predetermined overhead rates
Kluth Corporation has two manufacturing departments--Molding and Customizing. The company used the following data at thee 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 1,800 15,800 14,000 $35,000 $ 2.00 $5,040 $40,040 4.00 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 $14,700 $ 8,400 $21,600 $ 8,400 2,700 11,300 600 1,200 Requirec 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
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