Sanderlin Corporation has two manufacturing departments--Machining and Finishing. The company used the following data at the beginning of the year to calculate predetermined overhead rates: Machining Finishing Total Estimated total machine-hours (MHs) 5,000 5,000 10,000 Estimated total fixed manufacturing overhead cost $ 26,500 $ 13,500 $ 40,000 Estimated variable manufacturing overhead cost per MH $ 2.00 $ 3.00 During the most recent month, the company started and completed two jobs--Job C and Job L. There were no beginning inventories. Data concerning those two jobs follow: Job C Job L Direct materials $ 12,500 $ 8,200 Direct labor cost $ 20,200 $ 6,400 Machining machine-hours 3,400 1,600 Finishing machine-hours 2,000 3,000 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. The calculated selling price for Job C is closest to:
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Sanderlin Corporation has two manufacturing departments--Machining and Finishing. The company used t...
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