Collini Corporation Has Two Production Departments, Machining and Customizing

question 267

Multiple Choice

Collini Corporation has two production departments, Machining and Customizing. The company uses a job-order costing system and computes a predetermined overhead rate in each production department. The Machining Department's predetermined overhead rate is based on machine-hours and the Customizing 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 T268. The following data were recorded for this job:

-If the company marks up its manufacturing costs by 40% then the selling price for Job T268 would be closest to:

• A) $1,932.40
• B) $6,763.40
• C) $4,831.00
• D) $7,440.00