Question

Opunui Corporation has two manufacturing departments--Molding and Finishing. The company used the following data at the beginning of the year to calculate predetermined overhead rates:Molding Finishing TotalEstimated total machine-hours (MHs) 6,500 3,700 10,200Estimated total fixed manufacturing overhead cost $ 18,000 $ 5,500 $ 23,500Estimated variable manufacturing overhead cost per MH $ 1.00 $ 2.00 During the most recent month, the company started and completed two jobs--Job A and Job M. There were no
beginning inventories. Data concerning those two jobs follow:Job A Job MDirect materials $ 16,800 $ 10,600Direct labor cost $ 23,700 $ 10,300Molding machine-hours 2,500 4,000Finishing machine-hours 2,500 1,000Assume that the company uses a plantwide predetermined manufacturing overhead rate based on machine-hours and uses a markup of 30% on manufacturing cost to establish selling prices.
Required:
1. The calculated selling price for Job A is closest to__________: (Round your intermediate calculations to 2 decimal places.)Multiple Choice:O $76,505O $96,250O $58,850O $17,655

Answer 1

Answer:

$58,850

Explanation:

Opunui Corporation

                                                                   Molding  Finishing    Total        

Estimated Total machine-hours (MHs) 6,500 3,700 10,200

Estimated Fixed manufacturing overhead cost $ 18,000 $ 5,500 $ 23,50

Estimated variable manufacturing overhead cost per MH $ 1.00 $ 2.00

                                        Job A                               Job M

Direct materials            $ 16,800                         $ 10,600

Direct labor cost           $ 23,700                           $ 10,300

Molding Variable OH       2,500                               8,000

Finishing Variable OH       2,500                             2,000

Fixed Molding Expenses (2500/ 6,500)*18000

                                       6923.076                        11076.92

Fixed Finishing Expenses 3716.216                     (2000/3700)* 5,550= 2973

Total Costs                        56,139.3                       41,977