a n for Chapters 1-5 Help Save & Exit Columbo Corporation has two production dep

Question

a n for Chapters 1-5 Help Save & Exit Columbo Corporation has two production departments, Forming and Finishing The company uses a job order costing system and overhead rate in each production department. The Forming Department's Department's predetermined overhead rate is based on direct labor-hours. At the beginning of the current year,the company had mede the following estimates Machine-hours Direct labor-hours Total fixed manufacturing overhead cost Variable manufacturing overhead per machine-hour Variable manufacturing overhead per direct labor-hour 17,000 18,800 1,000 9,0 $118,500 $78,300 $1.60 3.30 During the current month the company started and finished Job A948. The following data were recorded for this job: Job A948: Machine-hours Direct labor-hours Direct materials Direct labor cost 70 1e 3e se s 6se s 330 $388$1,980 If the company marks up its manufacturing costs by 40% then the selling price for Job A948 would be closest to (Round your intermediate ceculators to 2 decimal places.) to search

Explanation / Answer

Overhead rate of forming department = (110500/17000)+1.60 = 8.10 per machine hour

Overhead rate of finishing department = (78300/9000)+3.30 = 12 per labour hour

Calculate manufacturing cost :

Forming department Direct material 650 Direct labour 380 Overhead cost (70*8.10) 567 Finishing department Direct material 330 Direct labour 1900 Overhead cost (50*12) 600 Total manufacturing cost 4427 Markup (4427*40%) 1770.80 Selling price of Job 6197.80

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