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:
A)$40,320
B)$41,933
C)$13,440
D)$26,880

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:
A)$40,320 
B)$41,933 
C)$13,440 
D)$26,880

Quizplus · Accepted Answer

Machining Department predetermined overhead rate: 11ea7998_5f5f_43a7_911b_b7fed69abbd3_TB2627_00_TB2627_00 Assembly Department predetermined overhead rate: 11ea7998_5f5f_6ab8_911b_797e3dfac3fe_TB2627_00_TB2627_00 Manufacturing overhead applied to Job L: 11ea7998_5f5f_91c9_911b_7f21e1a93ec0_TB2627_00_TB2627_00 The selling price for Job L would be calculated as follows: 11ea7998_5f5f_91ca_911b_a9e5c86e10bd_TB2627_00_TB2627_00

Molash Corporation Has Two Manufacturing Departments--Machining and Assembly