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Category > Accounting Posted 01 Jun 2017 My Price 10.00

Kluth Corporation

Kluth Corporation has two manufacturing departments—Molding and Customizing. The company used the following data at the
beginning of the year to calculate predetermined overhead rates: Holding eta-twining Total Estimated total machine—hours (Has) 9,000 3,600 12,600
Estimated total fixed manufacturing overhead cost: $36,000 $13,320 $49,320
Eetimated variable manufacturing overhead cost per: HE S 2.50 $ 3.00 '— During the most recent month, the company started and completed two jobs—Job C and Job M. There were no beginning inventories
Data concerning those twojobs follow: 3013!! John Direct materials $16,700 S 9,900 Direct labor cost $23,¢nn $10,30n Holding machine-hours 2,700 1.3% Cuetonizing machine-hours 400 600
'—
Required: 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 20% on manufacturing cost to establish selling prices.
Calculate the selling prices for Job C and for Job M. (Do not round intermediate calculations.) Selling price for Job 6
Selling price for Job M

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SuperTutor
(15)
Status NEW Posted 01 Jun 2017 07:06 AM My Price 10.00

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