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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 rates:
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 7,000 Estimated total machine-hours (MHs) Estimated total fixed manufacturing overhead cost 3,800 10,800 $ $ 18, 200 $ 7,600 25,800 Estimated variable manufacturing overhead cost per MH $ 1.50 $ 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: Job C Job M $ $ Direct materials 16,900 10,300 $ Direct labor cost $ 23,600 10, 600 1,250 5,750 Molding machine-hours Customizing machine- hours 3,300 500 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
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