Molash Corporation Has Two Manufacturing Departments--Machining and Assembly

question 81

Multiple Choice

Molash 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: During the most recent month, the company started and completed two jobs--Job B and Job L. There were no beginning inventories. Data concerning those two jobs follow:
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 50% on manufacturing cost to establish selling prices. The calculated selling price for Job L is closest to: (Round your intermediate calculations to 2 decimal places.)

• A) $40,320
• B) $41,933
• C) $13,440
• D) $26,880

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Definitions:

Benchmarking

The process of comparing business processes and performance metrics to industry bests or best practices from other companies.

Critical Success Factors

Essential conditions or variables that, when properly sustained, maintained, or managed, can have a significant impact on the success of a business or project.

Production Activities

Processes involved in the creation of goods and services, ranging from raw material procurement to the final manufacturing steps.

Financial Performance Measures

Metrics used to assess a company's financial health, including profitability, liquidity, and solvency ratios.