Biology Forums - Study Force

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)	3,250	1,750	5,000
Estimated total fixed manufacturing overhead cost	$ 10,000	$ 5,100	$ 15,100
Estimated variable manufacturing overhead cost per MH	$ 2.50	$ 5.00

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	$ 16,400	$ 10,200
Direct labor cost	$ 23,400	$ 10,000
Molding machine-hours	1,250	2,000
Finishing machine-hours	1,250	500

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

▸ $55,800

▸ $78,120

▸ $87,775

▸ $22,320

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