Business, 25.03.2021 16:40 juliannxkim

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 20,000 24,000 Direct labor-hours 18,000 8,000 Total fixed manufacturing overhead cost $ 68,000 $ 36,000 Variable manufacturing overhead per machine-hour $ 1.90 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 20 Direct labor-hours 20 60 Direct materials $ 750 $ 250 Direct labor cost $ 450 $ 750 If the company marks up its manufacturing costs by 20% then the selling price for Job A319 would be closest to:

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Comans Corporation has two production departments, Milling and Customizing. The company uses a job-o...