Lotz 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 K.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 F is closest to:
A)$30,220
B)$90,660
C)$60,440
D)$96,100

Question

Lotz 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 K.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 F is closest to:
A)$30,220 
B)$90,660 
C)$60,440 
D)$96,100

Quizplus · Accepted Answer

Casting Department predetermined overhead rate: 11ea7998_5f61_6691_911b_59d6137bca67_TB2627_00_TB2627_00 Finishing Department predetermined overhead rate: 11ea7998_5f61_6692_911b_b5b5f894c102_TB2627_00_TB2627_00 Manufacturing overhead applied to Job F: 11ea7998_5f61_8da3_911b_c94e9b611cd3_TB2627_00_TB2627_00 The selling price for Job F would be calculated as follows: 11ea7998_5f61_8da4_911b_bbf273b2ba0e_TB2627_00_TB2627_00

Lotz Corporation Has Two Manufacturing Departments--Casting and Finishing