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 50% on manufacturing cost to establish selling prices. The calculated selling price for Job M is closest to:

Selling Price for Job M = $49,005

Explanation:

Note: This question is incomplete and lacks necessary data to solve. But I have found similar question on the internet and will be using its data to solve this question for the sake of understanding and concept.

Data Missing:

Estimated Total Machine Hours for Molding = 9000

Estimated Total Machine Hours for Customizing = 3600

Total = 9000 + 3600 = 12,600

Estimated Total Fixed manufacturing overhead cost for Molding = 36000

Estimated Total Fixed manufacturing overhead cost for Customizing = 13,320

Total = 36000 + 13320 = 49320

Estimated variable Manufacturing overhead cost per MH for Molding =  2.50

Estimated variable Manufacturing overhead cost per MH for Customization = 3.00

Data For JOB M:

Direct materials = $9,900

Direct labor Cost = $10,300

Molding Machine-hours = 1300

Customizing Machine Hours = 600

Required:

We are asked to calculate the selling price for Job M:

Solution:

Direct materials = $9,900

Direct labor Cost = $10,300

Variable manufacturing overhead For Molding:

(Estimated variable Manufacturing overhead cost per MH for Molding 2.50 x Molding Machine-hours = 1300)

Molding = 2.50 x 1300

Molding = 3,250

Similarly,

Variable manufacturing overhead For Customizing:

(Estimated variable Manufacturing overhead cost per MH for Customization = 3.00 x Customizing Machine Hours = 600)

Customizing = 3.00 x 600

Customizing = 1800

Now, we need to find Fixed manufacturing overhead for both molding and customizing:

For Molding:

First we need to find the cost per machine hour for molding:

Molding Cost per machine hour = (Estimated Total Fixed manufacturing overhead cost for Molding = 36000 / Estimated Total Machine Hours for Molding = 9000)'

Molding Cost per machine hour = 36000/9000

Molding Cost per machine hour = $4 per machine hour

So,

Fixed manufacturing overhead for Molding:

Molding = Molding Cost per machine hour x Molding Machine-hours = 1300

Molding = 4 x 1300

Molding = 5200

Similarly,

For Customizing:

Customizing Cost per machine hour = 13320/3600

Customizing Cost per machine hour = $3.70 per machine hour

Fixed manufacturing overhead for Customizing:

Customizing = Customizing Cost per machine hour x Customizing Machine Hours

Customizing = $3.70 x 600

Customizing = 2220

Now, we need to find the total cost for Job M:

Total Cost = Direct materials + Direct labor Cost  + Variable manufacturing overhead For Molding + Variable manufacturing overhead For Customizing + Fixed manufacturing overhead for Molding + Fixed manufacturing overhead for Customizing

Total Cost =  $9,900 + $10,300 + 3,250 + 1800 + 5200 + 2220

Total Cost = $32,670

Now, we need to find the Selling price for Job M, for which we need to add the markup into the total cost.

Markup percentage = 50%

So,

Markup = Markup% x Total Cost

Markup = 0.50 x 32,670

Markup = $16,335

Selling Price = Markup + Total Cost

Selling Price for Job M = $16,335 + $32,670

Hence,

Selling Price for Job M = $49,005

the most important factor in the

work process or industry is to retain the interest of the employee. and to

retain them, their salary or profit must be adjusted to the best value. unless

the employee does not do his job properly, employees must receive bonuses or

benefits to ensure them to stay in the company. it will actually make them stay

longer, make them feel important and reduce costs for hiring new employees.

explanation:

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