Question
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 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 | 27,000 | 18,000 |
Direct labor-hours | 11,000 | 3,000 |
Total fixed manufacturing overhead cost | $ 105,300 | $ 12,900 |
Variable manufacturing overhead per machine-hour | $ 1.00 | |
Variable manufacturing overhead per direct labor-hour | $ 3.20 |
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 | 50 | 30 |
Direct labor-hours | 40 | 30 |
Direct materials | $ 710 | $ 160 |
Direct labor cost | $ 520 | $ 480 |
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.)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started