Deloria Corporation has two production departments, Forming and Assembly. The company uses a job-order costing system and computes a predetermined overhead rate in each production department. The Forming Department's predetermined overhead rate is based on machine-hours and the Assembly Department's predetermined overhead rate is based on direct labor-hours. At the beginning of the current year, the company had made the following estimates: FormingAssemblyMachine-hours 19,000 15,000Direct labor-hours 4,000 8,000Total fixed manufacturing overhead cost$129,200$77,600Variable manufacturing overhead per machine-hour$1.60 Variable manufacturing overhead per direct labor-hour $3.00During the current month the company started and finished Job T288. The following data were recorded for
this job:Job T288:FormingAssemblyMachine-hours 80 10Direct labor-hours 30 40Direct materials$730$380Direct labor cost$900$1,200If the company marks up its manufacturing costs by 20% then the selling price for Job T288 would be closest to: (Round your intermediate calculations to 2 decimal places.)
A. $5,268.00
B. $5,795.00
C. $4,390.00
D. $878.00
Answer: A
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