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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 25,000 15,000 $132,500 $ 1.80 Customizing 10,000 4,000 $22,000 Machine-hours Direct labor-hours Total fixed manufacturing overhead cost Variable manufacturing overhead per machine-hour Variable manufacturing overhead per direct labor- hour $ 3.90 During the current month the company started and finished Job A319. The following data were recorded for this job: Milling Job A319: Machine-hours Direct labor-hours Direct materials Direct labor cost 79 30 Customizing 29 40 $ 170 $ 510 $ 740 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 o $3.537 O $3.215 O $2,923 $292 O
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