Answered step by step
Verified Expert Solution
Link Copied!

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

image text in transcribed

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: Machine-hours Direct labor-hours Total fixed manufacturing overhead cost Variable manufacturing overhead per machine-hour Variable manufacturing overhead per direct labor- hour Milling 27,000 11,000 $105,300 $ 1.00 Customizing 18,000 3,000 $12,900 $ 3.20 During the current month the company started and finished Job A319. The following data were recorded for this job: Job A319: Machine-hours Direct labor-hours Direct materials Direct labor cost Milling 50 40 $ 710 $ 520 Customizing 30 30 $ 160 $ 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

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Love Audit

Authors: Annah Conwell

1st Edition

B0B9SMDYNM, 979-8843874452

More Books

Students also viewed these Accounting questions

Question

Question 1 (a2) What is the reaction force Dx in [N]?

Answered: 1 week ago