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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 22,000 10,000 $70,400 $ 1.00 Customizing 25,800 6,000 $19, 200 $ 4.60 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 39 40 $770 $420 Customizing 10 30 $220 $660 costing system and computes a predetermined overhead rate in each production department The Milling Department's predetermined overhead tate 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 22,000 10,000 $70,400 $ 1.00 Customizing 25,000 6,000 $19,200 $.4.60 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 30 40 $770 $420 Customizing 10 30 $220 $660 If the company marks up its manufacturing costs by 10% then the selling price for Job A319 would be closest to
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