Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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 Customizing Machine-hours 21,000 12,000 14,000 5,000 Direct labor-hours $63,000 Total fixed manufacturing overhead cost $24,000 Variable manufacturing overhead per machine- 2.00 hour Variable manufacturing overhead per direct 5.00 labor-hour 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 70 30 Direct labor-hours 20 40 590 Direct materials 200 Direct labor cost 760 600 If the company marks up its manufacturing costs by 10% then the selling price for Job A319 would be closest to
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