Kluth Corporation has two manufacturing departments--Molding and Customizing. The company used the following data at...
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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 12,000 $26,400 $ 1.50 Total Estimated total machine-hours ( MHs) Estimated total fixed manufacturing overhead cost Estimated variable manufacturing overhead cost per MH 1,700 $6,290 $ 3.00 13,700 $32,690 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 M Job C $14,500 $ 8,200 $21,400 $ 8,200 1,250 1,200 Direct materials Direct labor cost Molding machine-hours Customizing machine-hours 10,750 500 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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