Biology Forums - Study Force

Nielsen 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)	1,000	4,000	5,000
Estimated total fixed manufacturing overhead cost	$ 4,700	$ 10,800	$ 15,500
Estimated 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 M. There were no beginning inventories. Data concerning those two jobs follow:

	Job F	Job M
Direct materials	$ 13,000	$ 7,400
Direct labor cost	$ 20,400	$ 8,800
Machining machine-hours	700	300
Assembly machine-hours	1,600	2,400

Assume that the company uses a plantwide predetermined manufacturing overhead rate based on machine-hours and uses a markup of 40% on manufacturing cost to establish selling prices. The calculated selling price for Job M is closest to: (Round your intermediate calculations to 2 decimal places.)

▸ $46,154

▸ $41,958

▸ $29,970

▸ $11,988

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