Reference no: EM13972729

Smithson Company uses a job-order costing system and has two manufacturing departments--Molding and Fabrication.  The company provided the following estimates at the beginning of the year:

	Molding		Fabrication		Total
Machine-hours	$20,000		30,000		50,000
Fixed manufacturing overhead costs	800,000		$300,000		$1,100,000
Variable manufacturing overhead per machine-hour	$5.00		$5.00

During the year, the company had no beginning or ending inventories and it started, completed, and sold only two job-Job D-75 and Job C-100. It provided the following information related to the two jobs:

Job D-75:	Molding		Fabrication		Total
Direct materials cost	$375,000		$325,000		$700,000
Direct labor cost	$200,000		$160,000		$360,000
Machine-hours	15,000		5,000		20,000

Job C-100:	Molding		Fabrication		Total
Direct materials cost	$300,000		$250,000		$550,000
Direct labor cost	$175,000		$225,000		$400,000
Machine-hours	5,000		25,000		30,000

Smithson had no overapplied or underapplied manufacturing overhead during the year.