Biology Forums - Study Force

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

	Forming	Assembly	Total
Estimated total machine-hours (MHs)	5,000	5,000	10,000
Estimated total fixed manufacturing overhead cost	$ 27,000	$ 10,500	$ 37,500
Estimated variable manufacturing overhead cost per MH	$ 1.10	$ 2.80

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

	Job C	Job H
Direct materials	$ 11,200	$ 7,500
Direct labor cost	$ 21,000	$ 7,800
Forming machine-hours	3,400	1,600
Assembly machine-hours	2,000	3,000

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

▸ $96,989

▸ $88,172

▸ $25,192

▸ $62,980

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