Matrejek Corporation has two manufacturing departments--Forming and Customizing.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 D and Job K.There were no beginning inventories.Data concerning those two jobs follow: Required:
a.Assume that the company uses a plantwide predetermined manufacturing overhead rate based on machine-hours and uses a markup of 50% on manufacturing cost to establish selling prices.Calculate the selling price for Job D.
b.Assume that the company uses a plantwide predetermined manufacturing overhead rate based on machine-hours and uses a markup of 50% on manufacturing cost to establish selling prices.Calculate the selling price for Job K.
c.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.Calculate the selling price for Job D.
d.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.Calculate the selling price for Job K.

Question

Matrejek Corporation has two manufacturing departments--Forming and Customizing.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 D and Job K.There were no beginning inventories.Data concerning those two jobs follow:  Required:
a.Assume that the company uses a plantwide predetermined manufacturing overhead rate based on machine-hours and uses a markup of 50% on manufacturing cost to establish selling prices.Calculate the selling price for Job D.
b.Assume that the company uses a plantwide predetermined manufacturing overhead rate based on machine-hours and uses a markup of 50% on manufacturing cost to establish selling prices.Calculate the selling price for Job K.
c.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.Calculate the selling price for Job D.
d.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.Calculate the selling price for Job K.

Quizplus · Accepted Answer

The Answer of Matrejek Corporation has two manufacturing departments--Forming and Customizing.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 D and Job K.There were no beginning inventories.Data concerning those two jobs follow:  Required:
a.Assume that the company uses a plantwide predetermined manufacturing overhead rate based on machine-hours and uses a markup of 50% on manufacturing cost to establish selling prices.Calculate the selling price for Job D.
b.Assume that the company uses a plantwide predetermined manufacturing overhead rate based on machine-hours and uses a markup of 50% on manufacturing cost to establish selling prices.Calculate the selling price for Job K.
c.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.Calculate the selling price for Job D.
d.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.Calculate the selling price for Job K.

Matrejek Corporation Has Two Manufacturing Departments--Forming and Customizing