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Asked by David Adamovich on May 29, 2024

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If the company marks up its manufacturing costs by 20% then the selling price for Job K928 would be closest to:

A) $4,275.00
B) $5,643.00
C) $5,130.00
D) $855.00

Markup

A percentage added to the cost price of goods to cover overhead and profit.

Selling Price

Selling price is the amount of money a buyer pays to purchase a product or service from a seller.

Manufacturing Costs

The total expense involved in the creation of a product, including raw materials, labor, and overhead costs.

  • Learn how to calculate selling prices based on manufacturing cost markups.
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Marco mayancelaMay 30, 2024
Final Answer :
C
Explanation :
To find the selling price, we need to add the manufacturing cost with markup.

Manufacturing cost of Job K928 = $4,275.00
Markup = 20% of manufacturing cost = 20% of $4,275.00 = $855.00

Selling price = Manufacturing cost + Markup = $4,275.00 + $855.00 = $5,130.00

Therefore, the closest selling price for Job K928 is $5,130.00, which is option C.
Explanation :
Machining Department overhead cost = Fixed manufacturing overhead cost + (Variable overhead cost per machine-hour × Total machine-hours in the department)
= $136,800 + ($1.80 per machine-hour × 19,000 machine-hours)
= $136,800 +$34,200 = $171,000
Predetermined overhead rate = Estimated total manufacturing overhead cost ÷ Estimated total amount of the allocation base incurred = $171,000 ÷ 19,000 machine-hours = $9.00 per machine-hour
Overhead applied to a particular job = Predetermined overhead rate × Amount of the allocation base incurred by the job = $9.00 per machine-hour × 90 machine-hours = $810
Finishing Department overhead cost = Fixed manufacturing overhead cost + (Variable overhead cost per direct labor-hour × Total direct labor-hours in the department)
= $69,600 + ($3.20 per direct labor-hour × 8,000 direct labor-hours)
= $69,600 + $25,600 = $95,200
Predetermined overhead rate = Estimated total manufacturing overhead cost ÷ Estimated total amount of the allocation base incurred = $95,200 ÷8,000 direct labor-hours = $11.90 per direct labor-hour
Overhead applied to a particular job = Predetermined overhead rate × Amount of the allocation base incurred by the job = $11.90 per direct labor-hour × 50 direct labor-hours = $595 Machining Department overhead cost = Fixed manufacturing overhead cost + (Variable overhead cost per machine-hour × Total machine-hours in the department) = $136,800 + ($1.80 per machine-hour × 19,000 machine-hours) = $136,800 +$34,200 = $171,000 Predetermined overhead rate = Estimated total manufacturing overhead cost ÷ Estimated total amount of the allocation base incurred = $171,000 ÷ 19,000 machine-hours = $9.00 per machine-hour Overhead applied to a particular job = Predetermined overhead rate × Amount of the allocation base incurred by the job = $9.00 per machine-hour × 90 machine-hours = $810 Finishing Department overhead cost = Fixed manufacturing overhead cost + (Variable overhead cost per direct labor-hour × Total direct labor-hours in the department) = $69,600 + ($3.20 per direct labor-hour × 8,000 direct labor-hours) = $69,600 + $25,600 = $95,200 Predetermined overhead rate = Estimated total manufacturing overhead cost ÷ Estimated total amount of the allocation base incurred = $95,200 ÷8,000 direct labor-hours = $11.90 per direct labor-hour Overhead applied to a particular job = Predetermined overhead rate × Amount of the allocation base incurred by the job = $11.90 per direct labor-hour × 50 direct labor-hours = $595 Reference: CH02-Ref30 Janicki Corporation has two manufacturing departments--Machining and Customizing.The company used the following data at the beginning of the year to calculate predetermined overhead rates: During the most recent month, the company started and completed two jobs--Job A and Job J.There were no beginning inventories.Data concerning those two jobs follow: Machining Department overhead cost = Fixed manufacturing overhead cost + (Variable overhead cost per machine-hour × Total machine-hours in the department) = $136,800 + ($1.80 per machine-hour × 19,000 machine-hours) = $136,800 +$34,200 = $171,000 Predetermined overhead rate = Estimated total manufacturing overhead cost ÷ Estimated total amount of the allocation base incurred = $171,000 ÷ 19,000 machine-hours = $9.00 per machine-hour Overhead applied to a particular job = Predetermined overhead rate × Amount of the allocation base incurred by the job = $9.00 per machine-hour × 90 machine-hours = $810 Finishing Department overhead cost = Fixed manufacturing overhead cost + (Variable overhead cost per direct labor-hour × Total direct labor-hours in the department) = $69,600 + ($3.20 per direct labor-hour × 8,000 direct labor-hours) = $69,600 + $25,600 = $95,200 Predetermined overhead rate = Estimated total manufacturing overhead cost ÷ Estimated total amount of the allocation base incurred = $95,200 ÷8,000 direct labor-hours = $11.90 per direct labor-hour Overhead applied to a particular job = Predetermined overhead rate × Amount of the allocation base incurred by the job = $11.90 per direct labor-hour × 50 direct labor-hours = $595 Reference: CH02-Ref30 Janicki Corporation has two manufacturing departments--Machining and Customizing.The company used the following data at the beginning of the year to calculate predetermined overhead rates: During the most recent month, the company started and completed two jobs--Job A and Job J.There were no beginning inventories.Data concerning those two jobs follow: Reference: CH02-Ref30
Janicki Corporation has two manufacturing departments--Machining and Customizing.The company used the following data at the beginning of the year to calculate predetermined overhead rates: Machining Department overhead cost = Fixed manufacturing overhead cost + (Variable overhead cost per machine-hour × Total machine-hours in the department) = $136,800 + ($1.80 per machine-hour × 19,000 machine-hours) = $136,800 +$34,200 = $171,000 Predetermined overhead rate = Estimated total manufacturing overhead cost ÷ Estimated total amount of the allocation base incurred = $171,000 ÷ 19,000 machine-hours = $9.00 per machine-hour Overhead applied to a particular job = Predetermined overhead rate × Amount of the allocation base incurred by the job = $9.00 per machine-hour × 90 machine-hours = $810 Finishing Department overhead cost = Fixed manufacturing overhead cost + (Variable overhead cost per direct labor-hour × Total direct labor-hours in the department) = $69,600 + ($3.20 per direct labor-hour × 8,000 direct labor-hours) = $69,600 + $25,600 = $95,200 Predetermined overhead rate = Estimated total manufacturing overhead cost ÷ Estimated total amount of the allocation base incurred = $95,200 ÷8,000 direct labor-hours = $11.90 per direct labor-hour Overhead applied to a particular job = Predetermined overhead rate × Amount of the allocation base incurred by the job = $11.90 per direct labor-hour × 50 direct labor-hours = $595 Reference: CH02-Ref30 Janicki Corporation has two manufacturing departments--Machining and Customizing.The company used the following data at the beginning of the year to calculate predetermined overhead rates: During the most recent month, the company started and completed two jobs--Job A and Job J.There were no beginning inventories.Data concerning those two jobs follow: During the most recent month, the company started and completed two jobs--Job A and Job J.There were no beginning inventories.Data concerning those two jobs follow: Machining Department overhead cost = Fixed manufacturing overhead cost + (Variable overhead cost per machine-hour × Total machine-hours in the department) = $136,800 + ($1.80 per machine-hour × 19,000 machine-hours) = $136,800 +$34,200 = $171,000 Predetermined overhead rate = Estimated total manufacturing overhead cost ÷ Estimated total amount of the allocation base incurred = $171,000 ÷ 19,000 machine-hours = $9.00 per machine-hour Overhead applied to a particular job = Predetermined overhead rate × Amount of the allocation base incurred by the job = $9.00 per machine-hour × 90 machine-hours = $810 Finishing Department overhead cost = Fixed manufacturing overhead cost + (Variable overhead cost per direct labor-hour × Total direct labor-hours in the department) = $69,600 + ($3.20 per direct labor-hour × 8,000 direct labor-hours) = $69,600 + $25,600 = $95,200 Predetermined overhead rate = Estimated total manufacturing overhead cost ÷ Estimated total amount of the allocation base incurred = $95,200 ÷8,000 direct labor-hours = $11.90 per direct labor-hour Overhead applied to a particular job = Predetermined overhead rate × Amount of the allocation base incurred by the job = $11.90 per direct labor-hour × 50 direct labor-hours = $595 Reference: CH02-Ref30 Janicki Corporation has two manufacturing departments--Machining and Customizing.The company used the following data at the beginning of the year to calculate predetermined overhead rates: During the most recent month, the company started and completed two jobs--Job A and Job J.There were no beginning inventories.Data concerning those two jobs follow:

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