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		12,000
Direct labor-hours		16,000		8,000
Total fixed manufacturing overhead cost	$	137,700	$	47,200
Variable manufacturing overhead per machine-hour	$	1.30
Variable manufacturing overhead per direct labor-hour			$	3.80

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		10
Direct labor-hours		50		40
Direct materials	$	630	$	170
Direct labor cost	$	700	$	510

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.)

Brewer 8e Rechecks 2019-08-02

Multiple Choice

• $4,098

• $3,415

• $2,846

• $569