TB MC Qu. 2-106 (Static) Nielsen Corporation has two manufacturing...
Nielsen Corporation has two manufacturing departments--Machining and Assembly. The company used the following data at the beginning of the year to calculate predetermined overhead rates:
Machining Assembly Total
Estimated total machine-hours (MHs) 1,000 4,000 5,000
Estimated total fixed manufacturing overhead cost $ 4,700 $ 10,800 $ 15,500
Estimated variable manufacturing overhead cost per MH $ 1.20 $ 2.20
During the most recent month, the company started and completed two jobs--Job F and Job M. There were no beginning inventories. Data concerning those two jobs follow:
Job F Job M
Direct materials $ 13,000 $ 7,400
Direct labor cost $ 20,400 $ 8,800
Machining machine-hours 700 300
Assembly machine-hours 1,600 2,400
Assume that the company uses a plantwide predetermined manufacturing overhead rate based on machine-hours and uses a markup of 40% on manufacturing cost to establish selling prices. The calculated selling price for Job M is closest to: (Round your intermediate calculations to 2 decimal places.)
Multiple Choice
$29,970
$11,988
$41,958
$46,154
