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		Total
Estimated total machine-hours (MHs)		6,500		3,500		10,000
Estimated total fixed manufacturing overhead cost	$	23,000		$4,600	$	27,600
Estimated variable manufacturing overhead cost per MH	$	2.00		$4.00

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 M

Direct Materials $15,800 $9,500

Direct Labor Cost   $22,800 $9,400

Molding Machine Hours. 2,500. 4,000

Finishing Machine Hours 2,500 1,000

Assume that the company uses a plantwide predetermined manufacturing overhead rate based on machine-hours and uses a markup of 20% 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.)

Multiple Choice

A.) $65,900

B.) $79,080

C.) $120,500

D.) $13,180

Answer 1

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