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jared8mp jared8mp
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A year ago

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

MoldingCustomizingTotal
Estimated total machine-hours (MHs)14,0002,90016,900
Estimated total fixed manufacturing overhead cost$35,000$8,990$43,990
Estimated variable manufacturing overhead cost per MH$2.00$6.00

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

Job CJob M
Direct materials$ 16,000$ 9,400
Direct labor cost$ 22,700$ 9,700
Molding machine-hours1,25012,750
Customizing machine-hours2,400500

Required:

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 20% on manufacturing cost to establish selling prices. Calculate the selling prices for Job C and for Job M. (Do not round intermediate calculations.)

Textbook 
Introduction to Managerial Accounting: Brewer Edition: 9e

Introduction to Managerial Accounting: Brewer Edition: 9e


Edition: 9th
Authors:
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JsimonJsimon
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jared8mp Author
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A year ago
This site is awesome
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Good timing, thanks!
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Thanks
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