Lotz Corporation has two manufacturing departments--Casting and Finishing. The company used the following data at the beginning of the year to calculate predetermined overhead rates: CastingFinishingTotalEstimated total machine-hours (MHs) 2,000 8,000 10,000Estimated total fixed manufacturing overhead cost$10,200$19,200$29,400Estimated variable manufacturing overhead cost per MH$1.20$2.20 During the most recent month, the company started and completed two jobs--Job F and Job K. There were no beginning inventories. Data concerning those two jobs follow: Job FJob KDirect materials$14,400$7,100Direct labor cost$22,500$6,600Casting machine-hours 1,400 600Finishing machine-hours 3,200 4,800 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. The calculated selling price for Job F is closest to:
A. $60,440
B. $30,220
C. $90,660
D. $96,100
Answer: C
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