Question

TB MC Qu. 2-113 Opunul 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 (MS) 6,500 Estimated total fixed manufacturing overhead cont $ 29,000 Estimated variable manufacturing overhead cost $ 2.50 per M Finishing 3,500 $6,000 $ 5.00 Total 10,000 $35,000 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 $17,200 $24,100 2,500 Job M $10,900 $10,600 4,000 Direct materials Direct labor cost Molding machine- hours Finishing machine-hours 1,000 2,500 Assume that the company uses a plantwide predetermined manufacturing overhead rate based on machine-hours and uses a markup of 20% 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

	Molding	Finishing	Total
Estimated total machine-hours (MHs)	6500	3500	10000
(*) Estimated variable manufacturing overhead cost per MH	2.50	5.00
Estimated total variable cost	16250	17500	33750
(+) Estimated total fixed manufacturing overhead cost	29000	6000	35000
Estimated total manufacturing overhead cost	45250	23500	68750

Plantwide predetermined overhead rate = Estimated total manufacturing overhead cost / Estimated total machine hours = 68750 / 10000

6.88

	Job A
Direct materials	17200
Direct labor cost	24100
Overhead applied [ 6.88 * ( 2500 + 2500 ) ]	34400
Manufacturing cost	75700
(+) Markup @ 20%	15140
Selling price	90840