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 $ 28,000 $ 2,600 $ 30,600 Estimated variable manufacturing overhead cost per MH $ 3.00 6.00 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 $13,700 $7,600 Direct labor cost $20,800 $7,500 Molding machine-hours Finishing machine-hours 2,500 4,000 2,500 1,000 Assume that the company uses a plantwide predetermined manufacturing overhead rate based on machine-hours and uses a markup of 30% 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.)
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 $ 28,000 $ 2,600 $ 30,600 Estimated variable manufacturing overhead cost per MH $ 3.00 6.00 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 $13,700 $7,600 Direct labor cost $20,800 $7,500 Molding machine-hours Finishing machine-hours 2,500 4,000 2,500 1,000 Assume that the company uses a plantwide predetermined manufacturing overhead rate based on machine-hours and uses a markup of 30% 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.)
Chapter1: Financial Statements And Business Decisions
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The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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Transcribed Image Text: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
$ 28,000
$ 2,600
$ 30,600
Estimated total fixed manufacturing overhead cost
Estimated variable manufacturing overhead cost per MH
$
3.00
$
6.00
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
$13,700
$7,600
Direct labor cost
$20,800
$7,500
Molding machine-hours
Finishing machine-hours
2,500
4,000
2,500
1,000
Assume that the company uses a plantwide predetermined manufacturing overhead rate based on machine-hours and uses a markup of 30% 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.)
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