Asked by Wenlu Zhang on Jul 02, 2024
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: 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:
Assume 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. The calculated selling price for Job A is closest to: (Round your intermediate calculations to 2 decimal places.)
A) $60,410
B) $78,533
C) $99,860
D) $18,123
Predetermined Overhead Rate
A rate used to allocate overhead costs to products or services, based on a predetermined activity level.
Manufacturing Departments
Sections in a manufacturing plant, each focusing on various parts of the manufacturing process.
Machine-Hours
The total hours that machinery is in operation during a production process.
- Calculate and understand selling prices based on manufacturing costs and markup percentages.
Learning Objectives
- Calculate and understand selling prices based on manufacturing costs and markup percentages.
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