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:
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:

-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 A is closest to:
A) $27,595
B) $87,752
C) $82,785
D) $55,190

Question

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:
  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:
 
-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 A is closest to:
A) $27,595 
B) $87,752 
C) $82,785 
D) $55,190

Quizplus · Accepted Answer

Machining Department predetermined overhead rate:
 11ea7761_1951_6876_81a5_cd3108fb877e_TB2580_00 Customizing Department predetermined overhead rate:
 11ea7761_1951_6877_81a5_efdde6604445_TB2580_00 Manufacturing overhead applied to Job A:
 11ea7761_1951_8f88_81a5_577108841baa_TB2580_00 The selling price for Job A would be calculated as follows:
 11ea7761_1951_8f89_81a5_2190b78caae5_TB2580_00

Janicki Corporation Has Two Manufacturing Departments--Machining and Customizing