Question

Opunti Corporation has two manufacturing departments Molding and Fishing The company used the following data at me beginning of the year to calculate predetermined overhead rates Estimated total machine-hours (1) Estimated total fixed manufacturing overhead cost Estimated variable manufacturing overhead cost per Holding 250 $ 23,000 $ 1.00 Finishing 1,750 3.300 Total 15.00 120.800 2. During the most recent month, the company started and completed two jobs Job A and Job M. There were no beginning inventores Data concerning these two follow Direct materials Direct labor cost Molding machine hours Finishing machine-hours Jobb $14.900 $22,000 $3,500 2,250 1,250 Assume that the company uses a plan wide predetermined mancuring overhead rate base price for Job A is closest to (Round your intermediate calculations to 2 decimal places. 40% on manufacturing cost to establishing prices. The calculated selling Murple Choice

Answer 1

Total Molding Department overhead	26250	=23000+(3250*1)
Total Finishing Department overhead	7300	=3800+(1750*2)
Total overhead	33550
Divide by Total machine hours	5000
Plantwide manufacturing overhead rate	6.71
	Job A
Direct materials	14900
Direct labor	22000
Overhead applied	16775	=(1250+1250)*6.71
Total manufacturing cost	53675
Add: Markup @ 40%	21470	=53675*40%
Selling price for Job A	75145
Option B $75,145 is correct