Janicki Corporation Has Two Manufacturing Departments--Machining and Customizing

question 42

Multiple Choice

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:
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 A is closest to: (Round your intermediate calculations to 2 decimal places.)

• A) $27,595
• B) $87,752
• C) $82,785
• D) $55,190

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Definitions:

Pygmalion Effect

The situation that occurs when a managerial leader believes that a group member will succeed and communicates this belief without realizing it.

Live up to Expectations

The act of meeting or surpassing the anticipations, hopes, or standards set by oneself or others.

Higher-level Needs

Refers to the more abstract, psychological, and self-fulfillment needs that go beyond basic physical or material requirements, such as self-esteem and self-actualization.

Hands-on Guidance

Direct involvement and support in leading others or instructing how tasks should be performed, typically through practical demonstration.