Question

TB MC Qu. 2-113 Opunui Corporation has two manufacturing ... Opunul 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 Estimated total machine-hours (MHS) 3,250 Estimated total fixed manufacturing overhead cost $ 27,000 Estimated variable manufacturing overhead cost per $ 1.00 Finishing 2,250 $4,700 $ 2.00 Total 5,500 $ 31,700 MO 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 $15,900 $23,000 1.250 Job M $9,700 $9,500 2,000 Direct materials Direct labor cost Molding machine- hours Pinishing machine- hours 500 1,750 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.)

Answer 1

Plantwide overhead rate = (3250*1+2250*2+31700)/5500 = 7.17 per MH

Selling price of Job A

	Job A
Direct material	15900
Direct labor	23000
Overhead (3000*7.17)	21510
Total Cost	60410
Markup	18123
Selling price	78533