Kalp Corporation Has Two Production Departments, Machining and Finishing

Multiple Choice

Kalp Corporation has two production departments, Machining and Finishing. 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 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 K928. The following data were recorded for this job:

-If the company marks up its manufacturing costs by 20% then the selling price for Job K928 would be closest to:

A) $4,275.00
B) $5,643.00
C) $5,130.00
D) $855.00