Sanderlin Corporation has two manufacturing departments-Machining and Finishing. The company used the following data at the beginning of the year to calculate predetermined overhead rates: MachiningFinishingTotalEstimated total machine-hours (MHs) 5,000 5,000 10,000Estimated total fixed manufacturing overhead cost$26,500$13,500$40,000Estimated variable manufacturing overhead cost per MH$2.00$3.00 During the most recent month, the company started and completed two jobs-Job C and Job L. There were no beginning inventories. Data concerning those two jobs follow: Job CJob LDirect materials$12,500$8,200Direct labor cost$20,200$6,400Machining machine-hours 3,400 1,600Finishing machine-hours 2,000 3,000Assume 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 20% on manufacturing cost to establish selling prices. The calculated selling price for Job C is closest to: (Round your intermediate calculations to 2 decimal places.)
A. $68,920
B. $82,704
C. $87,666
D. $13,784
Answer: B
You might also like to view...
Which of the following pay structures would a company adopt if it wanted a pay structure that rewards employees based on their knowledge and competency?
A. Pay policy line approach B. Skill-based pay approach C. Pay grade approach D. Delayering approach E. Market survey data approach
The signature of the person who is enforcing the contract is necessary
Indicate whether the statement is true or false
A buffer is a device to reduce shock or pain
Indicate whether the statement is true or false
Pilati signed a contract to work as a consulting engineer for the Radtech Company beginning January 1 . When Pilati reported to work on January 1, he was told that the position of consulting engineer had been abolished but that he could have a job in the marketing department. He refused. His contract with the company is discharged because of a(n)
a. anticipatory breach by the Radtech Company. b. material breach by the Radtech Company. c. anticipatory breach by Pilati. d. material breach by Pilati.