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 J is closest to:
A) $65,115
B) $67,720
C) $21,705
D) $43,410

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 J is closest to:
A) $65,115 
B) $67,720 
C) $21,705 
D) $43,410

Quizplus · Accepted Answer

Machining Department predetermined overhead rate:
 11ea7761_1951_b69a_81a5_07fcc2711e9a_TB2580_00 Customizing Department predetermined overhead rate:
 11ea7761_1951_ddab_81a5_63511716e20d_TB2580_00 Manufacturing overhead applied to Job J:
 11ea7761_1951_ddac_81a5_c73e72d65e77_TB2580_00 The selling price for Job J would be calculated as follows:
 11ea7761_1951_ddad_81a5_7d3cb0a039a7_TB2580_00

Janicki Corporation Has Two Manufacturing Departments--Machining and Customizing