Columbo Corporation Has Two Production Departments,Forming and Finishing

question 20

Multiple Choice

Columbo Corporation has two production departments,Forming and Finishing.The company uses a job-order costing system and computes a predetermined overhead rate in each production department.The Forming Department's predetermined overhead rate is based on machine-hours and the Finishing Department's predetermined overhead rate is based on direct labor-hours.At the beginning of the current year,the company had made the following estimates:
During the current month the company started and finished Job A948.The following data were recorded for this job:
If the company marks up its manufacturing costs by 40% then the selling price for Job A948 would be closest to:

• A) $6,197.80
• B) $1,770.80
• C) $4,427.00
• D) $6,818.00

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Definitions:

Showrooms

Physical spaces designed to display products or materials in an attractive setting for the purpose of marketing and sales.

Organizational Resistance

Opposition or pushback from employees or members of an organization against changes, policies, or initiatives perceived as threatening or unfavorable.

Interorganizational Agreements

Collaborative contracts or arrangements between two or more organizations aiming to achieve mutual goals.

Organization Design

The process of structuring an organization's role, responsibilities, and relationships to achieve its objectives efficiently and effectively.