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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: Machine-hours Direct labor-hours Total fixed manufacturing overhead cost Variable manufacturing overhead per machine-hour Variable manufacturing overhead per direct labor- hour Milling 18,000 4,000 $113,400 $ 1.60 Customizing 13,000 7,000 $64,400 $ 3.90 During the current month the company started and finished Job A319. The following data were recorded for this job: Milling 60 Job A319: Machine-hours Direct labor-hours Direct materials Direct labor cost 20 $ 655 $ 400 Customizing 10 60 $ 305 $1,200 The amount of overhead applied in the Customizing Department to Job A319 is closest to: (Round your intermediate calculations to 2 decimal places.) Multiple Choice $234.00 $786.00 $552.00 O $91,700.00
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