Macnamara Corporation has two manufacturing departments--Casting 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 F and Job M. There were no beginning inventories. Data concerning those two jobs follow:

-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 50% on manufacturing cost to establish selling prices.The calculated selling price for Job M is closest to:
A) $15,310
B) $47,767
C) $30,620
D) $45,930

Question

Macnamara Corporation has two manufacturing departments--Casting 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 F and Job M. There were no beginning inventories. Data concerning those two jobs follow:
 
-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 50% on manufacturing cost to establish selling prices.The calculated selling price for Job M is closest to:
A) $15,310 
B) $47,767 
C) $30,620 
D) $45,930

Quizplus · Accepted Answer

Casting Department predetermined overhead rate:
 11ea7761_194c_ad6d_81a5_8d7de373faaa_TB2580_00 Finishing Department predetermined overhead rate:
 11ea7761_194c_ad6e_81a5_fb47d5e7a805_TB2580_00 Manufacturing overhead applied to Job M:
 11ea7761_194c_ad6f_81a5_5977d07fb79e_TB2580_00 The selling price for Job M would be calculated as follows:
 11ea7761_194c_d480_81a5_3b4e3b3ef2fa_TB2580_00

Macnamara Corporation Has Two Manufacturing Departments--Casting and Finishing