Comans Corporation has two production departments, Milling and Customizing. The company uses a job-order costing system and computes a predetermined overhead rate in each production department. The Milling Departments predetermined overhead rate is based on machine-hours and the Customizing Departments predetermined overhead rate is based on direct labor-hours. At the beginning of the current year, the company had made the following estimates:

	Milling		Customizing
Machine-hours		20,000		24,000
Direct labor-hours		18,000		8,000
Total fixed manufacturing overhead cost	$	68,000	$	36,000
Variable manufacturing overhead per machine-hour	$	1.90
Variable manufacturing overhead per direct labor-hour			$	3.80

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		70		20
Direct labor-hours		20		60
Direct materials	$	750	$	250
Direct labor cost	$	450	$	750

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.)

Garrison 16e Rechecks 2017-06-22, Garrison 16e Rechecks 2019-08-02

Multiple Choice

• $3,683

• $3,069

• $614

• $4,419