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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
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 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 26,000 11,000 $91,000 $ 2.00 Customizing 10,000 8,000 $44,000 Machine-hours Direct labor-hours Total fixed manufacturing overhead cost Variable manufacturing overhead per machine- hour Variable manufacturing overhead per direct labor-hour 4.40 During the current month the company started and finished Job A319. The following data were recorded for this job: Job A319 Machine - hours Direct labor-hours Direct materials Direct labor cost Milling 40 30 $ 400 $ 570 Customizing 30 40 $ 200 $ 600 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.) Multiple Choice O $3,436 $2,863 O $2,386 $477
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