Matrejek Corporation has two manufacturing departments--Forming and Customizing. The company used the following data at the beginning of the year to calculate predetermined overhead rates:
| Forming | Customizing | Total |
|---|
| Estimated total machine-hours (MHs) | 8,000 | 2,000 | 10,000 |
|---|
| Estimated total fixed manufacturing overhead cost | $36,800 | $4,800 | $41,600 |
|---|
| Estimated variable manufacturing overhead cost per MH | $ 1.60 | $ 2.90 | |
|---|
During the most recent month, the company started and completed two jobs--Job D and Job K. There were no beginning inventories. Data concerning those two jobs follow:
| Job D | Job K |
|---|
| Direct materials | $15,600 | $6,900 |
|---|
| Direct labor cost | $19,100 | $8,700 |
|---|
| Forming machine-hours | 5,400 | 2,600 |
|---|
| Customizing machine-hours | 800 | 1,200 |
|---|
Required:
a. Assume that the company uses a plantwide predetermined manufacturing overhead rate based on machine-hours and uses a markup of 50% on manufacturing cost to establish selling prices. Calculate the selling price for Job D.
b. Assume that the company uses a plantwide predetermined manufacturing overhead rate based on machine-hours and uses a markup of 50% on manufacturing cost to establish selling prices. Calculate the selling price for Job K.
c. 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. Calculate the selling price for Job D.
d. 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. Calculate the selling price for Job K.
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