Janicki Corporation has two manufacturing departments-Machining and Customizing. The company used the following data at the beginning of the year to calculate predetermined overhead rates: MachiningCustomizingTotalEstimated total machine-hours (MHs) 1,000 9,000 10,000Estimated total fixed manufacturing overhead cost$4,800$23,400$28,200Estimated variable manufacturing overhead cost per MH$1.10$2.50 During the most recent month, the company started and completed two jobs-Job A and Job J. There were no beginning inventories. Data concerning those two jobs follow: Job AJob JDirect materials$12,000$7,700Direct labor cost$20,700$6,400Machining machine-hours 700 300Customizing machine-hours 3,600 5,400Assume 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 A is closest to: (Round your intermediate calculations to 2 decimal places.)
A. $27,595
B. $82,785
C. $87,752
D. $55,190
Answer: B
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