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 15,000 20,000 Direct labor-hours 11,000 5,000 Total fixed manufacturing overhead cost $ 82,500 $ 29,500 Variable manufacturing overhead per machine-hour $ 2.00 Variable manufacturing overhead per direct labor-hour $ 4.10 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 60 10 Direct labor-hours 50 40 Direct materials $ 690 $ 220 Direct labor cost $ 740 $ 660 If the company marks up its manufacturing costs by 10% then the selling price for Job A319 would be closest to: Note: Round your intermediate calculations to 2 decimal places.
Multiple Choice:
$3,824
$3,476
$3,160
$316
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