Stockmaster Corporation has two manufacturing departments--Forming and Assembly. The company used the following data at the beginning of the year to calculate predetermined overhead rates: FormingAssemblyTotalEstimated total machine-hours (MHs) 5,000 5,000 10,000Estimated total fixed manufacturing overhead cost$27,000$10,500$37,500Estimated variable manufacturing overhead cost per MH$1.10$2.80 During the most recent month, the company started and completed two jobs--Job C and Job H. There were no beginning inventories. Data concerning those two jobs follow: Job CJob HDirect materials$11,200$7,500Direct labor cost$21,900$7,800Forming machine-hours 3,400 1,600Assembly machine-hours 2,000 3,000 Assume that the company uses a plantwide predetermined manufacturing overhead
rate based on machine-hours and uses a markup of 40% on manufacturing cost to establish selling prices. The calculated selling price for Job C is closest to:
A. $62,980
B. $25,192
C. $96,989
D. $88,172
Answer: D
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