Deloria Corporation has two production departments, Forming and Assembly. The company uses a job-order costing system and computes a predetermined overhead rate in each production department. The Forming Department's predetermined overhead rate is based on machine-hours and the Assembly Department's predetermined overhead rate is based on direct labor-hours. At the beginning of the current year, the company had made the following estimates: During the current month the company started and finished Job T288. The following data were recorded for this job:
If the company marks up its manufacturing costs by 20% then the selling price for Job T288 would be closest to: (Round your intermediate calculations to 2 decimal places.)
A) $4,390.00
B) $878.00
C) $5,268.00
D) $5,795.00

Question

Deloria Corporation has two production departments, Forming and Assembly. The company uses a job-order costing system and computes a predetermined overhead rate in each production department. The Forming Department's predetermined overhead rate is based on machine-hours and the Assembly Department's predetermined overhead rate is based on direct labor-hours. At the beginning of the current year, the company had made the following estimates:  During the current month the company started and finished Job T288. The following data were recorded for this job:
 If the company marks up its manufacturing costs by 20% then the selling price for Job T288 would be closest to: (Round your intermediate calculations to 2 decimal places.)
A) $4,390.00 
B) $878.00 
C) $5,268.00 
D) $5,795.00

Quizplus · Accepted Answer

The Answer of Deloria Corporation has two production departments, Forming and Assembly. The company uses a job-order costing system and computes a predetermined overhead rate in each production department. The Forming Department's predetermined overhead rate is based on machine-hours and the Assembly Department's predetermined overhead rate is based on direct labor-hours. At the beginning of the current year, the company had made the following estimates:  During the current month the company started and finished Job T288. The following data were recorded for this job:
 If the company marks up its manufacturing costs by 20% then the selling price for Job T288 would be closest to: (Round your intermediate calculations to 2 decimal places.)
A) $4,390.00 
B) $878.00 
C) $5,268.00 
D) $5,795.00

Deloria Corporation Has Two Production Departments, Forming and Assembly