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Comans Corporation has two production departments, Miling and Customizing. The company uses a job-order costing system and computes a predetermined overhead rate in each production
Comans Corporation has two production departments, Miling and Customizing. The company uses a job-order costing system and computes a predetermined overhead rate in each production department. The Milling Department's predetermined overhead rate is based on machine hours and the Customizing 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 Milling Cutomizing Machine-hours 11,000 17,000 Direct labor-hours 8,000 8,000 Total fixed manufacturing overhead coat $ 34,100 27,200 Variable manufacturing overhead per machine-hour $ 1.60 Variable manufacturing overhead per direct labor-hour $ 3.20 During the current month the company started and finished Job A319. The following data were recorded for this job: Job A319 Milling Customizing Machine-hours 50 Direct labor-hours 60 50 Direct materials $ 660 $ 230 Direct labor coot $ 630 $ 690 If the company marks up its manufacturing costs by 20% then the selling price for Job A319 would be closest to: (Round your intermediate calculations to 2 decimal places.) 20 Multiple Choice $3,330 5555 $3,906 $2.775
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