Biology Forums - Study Force

Molash Corporation has two manufacturing departments--Machining and Assembly. The company used the following data at the beginning of the year to calculate predetermined overhead rates:

	Machining	Assembly	Total
Estimated total machine-hours (MHs)	2,000	3,000	5,000
Estimated total fixed manufacturing overhead cost	$ 9,400	$ 8,100	$ 17,500
Estimated variable manufacturing overhead cost per MH	$ 1.80	$ 2.40

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

	Job B	Job L
Direct materials	$ 14,400	$ 7,100
Direct labor cost	$ 23,500	$ 6,700
Machining machine-hours	1,400	600
Assembly machine-hours	1,200	1,800

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 L is closest to: (Round your intermediate calculations to 2 decimal places.)

▸ $40,320

▸ $41,933

▸ $13,440

▸ $26,880

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