Answer:
Selling price for Job C $93,300
Selling price for Job M $78,204
Explanation:
The computation of the selling prices for Job C and for Job M is given below:
But before that following calculations need to be done
Departmental overhead rates:
Molding 6.50 (2.5 + (36000 ÷ 9000))
Customizing 6.70 (3 + (13320 ÷ 3600)
Particulars Job C Job M
Direct materials $16,700 $9,900
Direct labor cost $23,400 $10,300
Overhead applied:
Molding $17,550 $40,950
(2700 × 6.50) (6300 × 6.50)
Customizing $20,100 $4,020
(3000 × 6.70) (600 × 6.70)
Total manufacturing cost $77,750 $65,170
Add: Markup at 20% $15,550 $13,034
Selling price $93,300 $78,204
