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 Departments predetermined overhead rate is based on machine-hours and the Customizing Departments 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		10,000		22,000
Direct labor-hours		19,000		9,000
Total fixed manufacturing overhead cost	$	41,000	$	28,800
Variable manufacturing overhead per machine-hour	$	1.30
Variable manufacturing overhead per direct labor-hour			$	3.50

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		40
Direct labor-hours		30		20
Direct materials	$	750	$	140
Direct labor cost	$	610	$	420

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.)

Noreen 5e Rechecks 2019-08-02

• $3,191

• $2,659

• $2,216

• $443