Question
Lotz Corporation has two manufacturing departments--Casting and Finishing. The company used the following data at the beginning of the year to calculate predetermined overhead rates:
Lotz Corporation has two manufacturing departments--Casting and Finishing. The company used the following data at the beginning of the year to calculate predetermined overhead rates:
Casting | Finishing | Total | |
---|---|---|---|
Estimated total machine-hours (MHs) | 2,000 | 8,000 | 10,000 |
Estimated total fixed manufacturing overhead cost | $ 10,200 | $ 19,200 | $ 29,400 |
Estimated variable manufacturing overhead cost per MH | $ 1.20 | $ 2.20 |
During the most recent month, the company started and completed two jobs--Job F and Job K. There were no beginning inventories. Data concerning those two jobs follow:
Job F | Job K | |
---|---|---|
Direct materials | $ 14,400 | $ 7,100 |
Direct labor cost | $ 22,500 | $ 6,600 |
Casting machine-hours | 1,400 | 600 |
Finishing machine-hours | 3,200 | 4,800 |
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 50% on manufacturing cost to establish selling prices. The calculated selling price for Job F is closest to:
Note: Round your intermediate calculations to 2 decimal places.
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