View the step-by-step solution to:

Question

# Opunui Corporation has two manufacturing departments--Molding and Finishing. The company used the following data

at the beginning of the year to calculate predetermined overhead rates:

Molding Finishing Total

Estimated total machine-hours (MHs) 6,500 3,500 10,000

Estimated total fixed manufacturing overhead cost \$ 16,000 \$ 4,100 \$ 20,100

Estimated variable manufacturing overhead cost per MH \$ 1.00 \$ 2.00

During the most recent month, the company started and completed two jobs--Job A and Job M. There were no beginning inventories. Data concerning those two jobs follow:

Job A Job M

Direct materials \$ 15,300 \$ 9,000

Direct labor cost \$ 22,200 \$ 8,900

Molding machine-hours 2,500 4,000

Finishing machine-hours 2,500 1,000

Assume that the company uses a plantwide predetermined manufacturing overhead rate based on machine-hours and uses a markup of 30% on manufacturing cost to establish selling prices. The calculated selling price for Job A is closest to:

A)\$54,300 B)\$70,590 C)\$87,900 D)\$16,290

The calculated selling price for Job A is closest to
S
Direct materials
15,300
Direct labor cost
22,200
Molding machine ( 2,500*\$ 1)=
\$2,500
Finishing machine (2,500*\$2)=...

### Why Join Course Hero?

Course Hero has all the homework and study help you need to succeed! We’ve got course-specific notes, study guides, and practice tests along with expert tutors.

• ### -

Study Documents

Find the best study resources around, tagged to your specific courses. Share your own to gain free Course Hero access.

Browse Documents