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Madole Corporation has two production departments, Forming and Customizing. The company uses a job-order costing system and computes a predetermined overhead rate in each production

Madole Corporation has two production departments, Forming and Customizing. The company uses a job-order costing system and computes a predetermined overhead rate in each production department. The Forming Department's predetermined overhead rate is based on machine-hours and the Customizing Department's predetermined overhead rate is based on direct labor-hours. At the beginning of the current year, the company had made the following estimates:
Forming Customizing
Machine-hours 12,000 2,000
Direct labor-hours 3,000 9,000
Total fixed manufacturing overhead cost $156,000 $60,000
Variable manufacturing overhead per machine-hour $2.00
Variable manufacturing overhead per direct labor-hour $4.00
During the current month the company started and finished Job K973. The following data were recorded for this job:
Job K973: Forming Customizing
Machine-hours 70 15
Direct labor-hours 10 60
Direct labor rate per hour $ 15 $ 20
Direct materials used $ 500 $ 700

4. If there is a pricing policy of charging a mark-up plus of 65%, what is the price of this job?

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