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Business, 05.05.2020 07:26 bradenhale

Collini Corporation has two production departments, Machining and Customizing. The company uses a job-order costing system and computes a predetermined overhead rate in each production department. The Machining Departmentâs predetermined overhead rate is based on machine-hours and the Customizing Departmentâs predetermined overhead rate is based on direct labor-hours. At the beginning of the current year, the company had made the following estimates:

Machining Customizing
Machine-hours 17,000 15,000
Direct labor-hours 3,000 6,000
Total fixed manufacturing overhead cost $102,000 $61,200
Variable manufacturing overhead per machine-hour $ 1.70
Variable manufacturing overhead per direct labor-hour $ 4.10
During the current month the company started and finished Job T268. The following data were recorded for this job:

Job T268: Machining Customizing
Machine-hours 80 30
Direct labor-hours 30 50
Direct materials 720 380
Direct labor cost 900 1,500

If the company marks up its manufacturing costs by 40% then the selling price for Job T268 would be closest to: (Round your intermediate calculations to 2 decimal places.)

A. $6,763.40
B. $7,440.00
C. $4,831.00
D. $1,932.40

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