9 Janicki Corporation has two manufacturing departments-Machining and Customizin

Question

9 Janicki Corporation has two manufacturing departments-Machining and Customizing. The company used the following data at the beginning of the year to calculate predetermined overhead rates: Machining Customizing Total 10,000 $ 28,200 Estimated total machine-hours (MHS) Estimated total fixed manufacturing overhead cost 4,800 Estimated variable manufacturing overhead cost per1.10 MH 1,000 9,000 23,400 $2.50 00 39:19 During the most recent month, the company started and completed two jobs-Job A and Job J. There were no beginning inventories. Data concerning those two jobs follow Job A Direct materials Direct labor cost Machining machine-hours Custonizing machine-hours $12,000 $7, 700 $20,700 6,400 300 5,400 700 3,600 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. The calculated s price for Job J is closest to: (Round your intermediate calculations to 2 decimal places.) Multiple Choice $71,983 $65.439 $43,626 $21,813

Explanation / Answer

Answer is $ 65439.

Explanation:

Total manufacturing OH Machining Customizing Total MH used 1000 9000 10000 Variable OH rate per MH 1.1 2.5 Total Variable OH 1100 22500 23600 Fixed OH 28200 Total OH 51800 Divide: Number of MH 10,000 OH rate per MH 5.18 Job J: Estimated selling price: Cost: material 7700 Labour 6400 OH (5700 MH @5.18) 29526 Total cost 43626 Add: estimated markup 21813 Estimated Selling price    65439

Related Questions

Navigate

• Browse (All)
• Browse 9
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.