Kluth Corporation Has Two Manufacturing Departments--Molding and Customizing

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.