Matrejek Corporation has two manufacturing departments--Forming 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 D and Job K. There were no beginning inventories. Data concerning those two jobs follow:
Required:a. Assume that the company uses a plantwide predetermined manufacturing overhead rate based on machine-hours and uses a markup of 50% on manufacturing cost to establish selling prices. Calculate the selling price for Job D.b. Assume that the company uses a plantwide predetermined manufacturing overhead rate based on machine-hours and uses a markup of 50% on manufacturing cost to establish selling prices. Calculate the selling price for Job K.c. 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. Calculate the selling price for Job D.d. 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. Calculate the selling price for Job K.
Definitions:
Bilateral Contract
A legal agreement in which both parties make promises to perform certain actions or obligations.
Unilateral Contract
An agreement where one party makes a promise in exchange for an act by another party, becoming binding once the act is performed.
AIG
American International Group, Inc., a multinational finance and insurance corporation with operations in more than 80 countries and jurisdictions.
Liquidated Debt
A debt for which the exact monetary value has been determined and acknowledged by all parties involved.
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