Question
Opunui Corporation has two manufacturing departments--Molding and Finishing. The company used the following data at the beginning of the year to calculate predetermined overhead rates:
Opunui Corporation has two manufacturing departments--Molding and Finishing. The company used the following data at the beginning of the year to calculate predetermined overhead rates:
Molding | Finishing | Total | |
---|---|---|---|
Estimated total machine-hours (MHs) | 3,250 | 2,250 | 5,500 |
Estimated total fixed manufacturing overhead cost | $27,000 | $ 4,700 | $31,700 |
Estimated variable manufacturing overhead cost per machine-hour | $ 1.00 | $ 2.00 |
During the most recent month, the company started and completed two jobs--Job A and Job M. There were no beginning inventories. Data concerning those two jobs follow:
Job A | Job M | |
---|---|---|
Direct materials | $ 15,900 | $ 9,700 |
Direct labor cost | $ 23,000 | $ 9,500 |
Molding machine-hours | 1,250 | 2,000 |
Finishing machine-hours | 1,750 | 500 |
Assume that the company uses a plantwide predetermined manufacturing overhead rate based on machine-hours and uses a markup of 30% on manufacturing cost to establish selling prices. The calculated selling price for Job A is closest to: (Round your intermediate calculations to 2 decimal places.)
Multiple Choice
$60,410
$78,533
$99,860
$18,123
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