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TB Problem Qu. 2-272 Kluth Corporation has two manufacturing ... Kluth Corporation has two manufacturing...

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Accounting

TB Problem Qu. 2-272 Kluth Corporation has two manufacturing ... 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 Total Estimated total machine-hours (MHs) 7,000 3,200 10,200 Estimated total fixed manufacturing overhead cost $ 18,200 $ 11,520 $ 29,720 Estimated variable manufacturing overhead cost per MH $ 1.50 $ 2.00 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 C Job M Direct materials $ 16,400 $ 9,700 Direct labor cost $ 23,100 $ 10,100 Molding machine-hours 2,500 4,500 Customizing machine-hours 2,200 1,000 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.)

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