Answer:
Explanation:
Forming
Estimated fixed manufacturing overhead $27,000
Estimated variable manufacturing overhead ($1.10*5,000) $5,500
Estimated total manufacturing overhead cost $32,500
Assembly
Estimated fixed manufacturing overhead $10,500
Estimated variable manufacturing overhead ($2.80 × 5,000) 14,000
Estimated total manufacturing overhead cost $24,500
Now we need to add these two numbers ($32,500 + $24,500 = $57,000) in order to identify plantwide predetermined manufacturing overhead rate
Estimated total manufacturing overhead cost $57,000
Estimated total machine hours 10,000
Predetermined overhead rate $5.70 [57,000/10,00]
The overhead applied to Job C:
Overhead applied to job C = Predetermined overhead rate x Machine-hours incurred by C
= $5.70 * (3,400 + 2,000)
= $5.70 x (5,400)
= $30,780
Job C’s manufacturing cost:
Direct materials $11,200
Direct labor cost $21,900
Manufacturing overhead $30,780
Total manufacturing cost $63,880
The selling price for Job C:
Total manufacturing cost $63,880
Markup (40%) 25,552
Selling price $89,432
