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Passa Caglia Passa Caglia
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11 months ago

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

CastingFinishingTotal
Estimated total machine-hours (MHs)1,0004,0005,000
Estimated total fixed manufacturing overhead cost$ 4,800$ 8,800$ 13,600
Estimated variable manufacturing overhead cost per MH$ 1.80$ 2.90

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 FJob M
Direct materials$ 11,500$ 9,000
Direct labor cost$ 18,400$ 7,400
Casting machine-hours700300
Finishing machine-hours1,6002,400

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. The calculated selling price for Job M is closest to: (Round your intermediate calculations to 2 decimal places.)



▸ $15,310

▸ $47,767

▸ $30,620

▸ $45,930
Textbook 
Introduction to Managerial Accounting: Brewer Edition: 9e

Introduction to Managerial Accounting: Brewer Edition: 9e


Edition: 9th
Authors:
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skdiveelisskdiveelis
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