Molash Corporation has two manufacturing departments--Machining and Assembly. The company used the following data at the beginning of the year to calculate predetermined overhead rates: During the most recent month, the company started and completed two jobs--Job B and Job L. There were no beginning inventories. Data concerning those two jobs follow:
Assume that the company uses departmental predetermined overhead rates with machine-hours as the allocation base in both production departments. Further assume that the company uses a markup of 50% on manufacturing cost to establish selling prices. The calculated selling price for Job L is closest to: (Round your intermediate calculations to 2 decimal places.)

Question

Molash Corporation has two manufacturing departments--Machining and Assembly. The company used the following data at the beginning of the year to calculate predetermined overhead rates:  During the most recent month, the company started and completed two jobs--Job B and Job L. There were no beginning inventories. Data concerning those two jobs follow:
 Assume that the company uses departmental predetermined overhead rates with machine-hours as the allocation base in both production departments. Further assume that the company uses a markup of 50% on manufacturing cost to establish selling prices. The calculated selling price for Job L is closest to: (Round your intermediate calculations to 2 decimal places.)

Quizplus · Accepted Answer

Machining Department predetermined overhead rate:
 11eacbfc_c700_3c8b_8ffe_d312fdc4cba1_TB7552_00 Assembly Department predetermined overhead rate:
 11eacbfc_c700_639c_8ffe_99ca88267b4b_TB7552_00 Manufacturing overhead applied to Job L:
 11eacbfc_c700_639d_8ffe_1b80d744c3e4_TB7552_00 The selling price for Job L would be calculated as follows:
 11eacbfc_c700_639e_8ffe_55b5e3efa153_TB7552_00

Molash Corporation Has Two Manufacturing Departments--Machining and Assembly