Kluth Corporation Has Two Manufacturing Departments--Molding and Customizing

question 133

Essay

Kluth Corporation has two manufacturing departments--Molding 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 C and Job M.There were no beginning inventories.Data concerning those two jobs follow: Required:
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 20% on manufacturing cost to establish selling prices.Calculate the selling prices for Job C and for Job M.

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Definitions:

Dispensing

The process of preparing and giving out medicines and medical supplies as per a prescription or order.

Administering

The act of giving or applying something, such as a medication or treatment, to a person or group.

FDA

The Food and Drug Administration, a federal agency responsible for protecting and promoting public health through the control and supervision of food safety, tobacco products, dietary supplements, prescription and over-the-counter medications, vaccines, biopharmaceuticals, medical devices, and veterinary products.

Indications

Symptoms or conditions that suggest the need for a specific treatment, medication, or procedure.