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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 Customizing Machine-hours 22,000 25,000 Direct labor-hours 10,000 6,000 Total fixed manufacturing overhead cost $ 70,400 $ 19,200 Variable manufacturing overhead per machine-hour $ 1.00 Variable manufacturing overhead per direct labor-hour $ 4.60 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 30 10 Direct labor-hours 40 30 Direct materials $ 770 $ 220 Direct labor cost $ 660 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.) $ 420 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 $2,940 $2,673 $2,430 $243
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