Macnamara Corporation has two manufacturing departments--Casting and Finishing. 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 F and Job M. 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 M is closest to: (Round your intermediate calculations to 2 decimal places.)

Question

Macnamara Corporation has two manufacturing departments--Casting and Finishing. 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 F and Job M. 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 M is closest to: (Round your intermediate calculations to 2 decimal places.)

Quizplus · Accepted Answer

Casting Department predetermined overhead rate:
 11eacbfc_c72c_079f_8ffe_014f849600f8_TB7552_00 Finishing Department predetermined overhead rate:
 11eacbfc_c72c_2eb0_8ffe_039d67fcae01_TB7552_00 Manufacturing overhead applied to Job M:
 11eacbfc_c72c_2eb1_8ffe_5d7164f05781_TB7552_00 The selling price for Job M would be calculated as follows:
 11eacbfc_c72c_55c2_8ffe_8d9dd4a4dc4f_TB7552_00

Macnamara Corporation Has Two Manufacturing Departments--Casting and Finishing