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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
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: Machine-hours Direct labor-hours Total fixed manufacturing overhead cost Variable manufacturing overhead per machine-hour Variable manufacturing overhead per direct labor-hour Milling 16,000 18,000 Customizing 11,000 6,000 $ 92,800 $ 28,800 $ 1.20 $ 5.00 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 50 60 $ 430 $ 800 Customizing 40 30 $ 180 $ 540 If the company marks up its manufacturing costs by 10% then the selling price for Job A319 would be closest to: (Round your Intermediate calculations to 2 decimal places.) Multiple Choice $2,853 $259 $2,594 $3,139
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