QUESTION 26

Stockmaster Corporation has two manufacturing departments--Forming and Assembly. The company used the following data at the beginning of the year to calculate predetermined overhead rates:

	Forming		Assembly		Total
Estimated total machine-hours (MHs)		5,000		5,000		10,000
Estimated total fixed manufacturing overhead cost	$	27,000	$	10,500	$	37,500
Estimated variable manufacturing overhead cost per MH	$	1.10	$	2.80

During the most recent month, the company started and completed two jobs--Job C and Job H. There were no beginning inventories. Data concerning those two jobs follow:

	Job C		Job H
Direct materials	$	11,200	$	7,500
Direct labor cost	$	21,900	$	7,800
Forming machine-hours		3,400		1,600
Assembly machine-hours		2,000		3,000

Assume that the company uses a plantwide predetermined manufacturing overhead rate based on machine-hours and uses a markup of 40% on manufacturing cost to establish selling prices. The calculated selling price for Job C is closest to:

$25,192

$88,172

$62,980

$96,989

QUESTION 27

Machining a part for a product is an example of a:

		Product-level activity.
		Organization-sustaining activity.
		Batch-level activity.
		Unit-level activity.