Comans Corporation has two production departments, Milling and Customizing. The company uses a job-order costing...
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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 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 25,000 10,000 Direct labor-hours 4,000 15,000 Total fixed manufacturing overhead cost Variable manufacturing overhead per machine-hour Variable manufacturing overhead per direct labor-hour $132,500 $22,000 $ 1.80 $3.90 During the current month the company started and finished Job A319. The following data were recorded for this job: Customizing Milling Job A319: Machine-hours 20 70 Direct labor-hours 30 40 $ 170 $ 510 Direct materials $ 630 Direct labor cost $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.)
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