Amason Corporation Has Two Production Departments, Forming and Assembly

Essay

Amason Corporation has two production departments, Forming and Assembly. 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 Assembly 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 A950. The following data were recorded for this job:
Required:Calculate the selling price for Job A950 if the company marks up its unit product costs by 30% to determine selling prices.