Kluth Corporation has two manufacturing departments-Molding and Customizing. The company used the following data at the beginning of the year to calculate predetermined overhead rates: Molding Customizing 7,000 $18,200 $ 1.50 Total Estimated total machine-hours (MHs) Estimated total fixed manufacturing overhead cost Estimated variable manufacturing overhead cost per MH 2,400 $9,600 $ 3.00 9,400 $27,800
Kluth Corporation has two manufacturing departments-Molding and Customizing. The company used the following data at the beginning of the year to calculate predetermined overhead rates: Molding Customizing 7,000 $18,200 $ 1.50 Total Estimated total machine-hours (MHs) Estimated total fixed manufacturing overhead cost Estimated variable manufacturing overhead cost per MH 2,400 $9,600 $ 3.00 9,400 $27,800
Chapter4: Job Order Costing
Section: Chapter Questions
Problem 2PB: Rulers Company is a neon sign company that estimated overhead will be $60,000, consisting of 1,500...
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![Kluth Corporation has two manufacturing departments-Molding and Customizing. The company used the following data at the
beginning of the year to calculate predetermined overhead rates:
Molding Customizing
7,000
$18,200
$ 1.50
Total
Estimated total machine-hours (MHs)
Estimated total fixed manufacturing overhead cost
Estimated variable manufacturing overhead cost per MH
9,400
2,400
$9,600
$ 3.00
$27,800
During the most recent month, the company started and completed two jobs--Job C and Job M. There were no beginning inventories.
Data concerning those two jobs follow:
Job C
Job M
Direct materials
Direct labor cost
$15,300 $ 9,000
$22,100 $ 9,100
2,500
1,400
Molding machine-hours
Customizing machine-hours
4,500
1,000
Required:
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 20% on manufacturing cost to establish selling prices.
Calculate the selling prices for Job C and for Job M. (Do not round intermediate calculations.)
Selling price for Job C
Selling price for Job M](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F46e79fad-d0ce-4e72-bc56-d5b759e34eee%2Fc3930d9a-ca7f-4ba4-8ea3-2757f2261de0%2Fvn6zkz_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Kluth Corporation has two manufacturing departments-Molding and Customizing. The company used the following data at the
beginning of the year to calculate predetermined overhead rates:
Molding Customizing
7,000
$18,200
$ 1.50
Total
Estimated total machine-hours (MHs)
Estimated total fixed manufacturing overhead cost
Estimated variable manufacturing overhead cost per MH
9,400
2,400
$9,600
$ 3.00
$27,800
During the most recent month, the company started and completed two jobs--Job C and Job M. There were no beginning inventories.
Data concerning those two jobs follow:
Job C
Job M
Direct materials
Direct labor cost
$15,300 $ 9,000
$22,100 $ 9,100
2,500
1,400
Molding machine-hours
Customizing machine-hours
4,500
1,000
Required:
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 20% on manufacturing cost to establish selling prices.
Calculate the selling prices for Job C and for Job M. (Do not round intermediate calculations.)
Selling price for Job C
Selling price for Job M
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