Mathematics, 24.02.2021 20:50 sierravick123owr441
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 15,000 20,000
Direct labor-hours 11,000 5,000
Total fixed manufacturing overhead cost $82,500 $29,500
Variable manufacturing overhead per machine-hour $ 2.00
Variable manufacturing overhead per direct labor-hour $ 4.10
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 60 10
Direct labor-hours 50 40
Direct materials $690 $220
Direct labor cost $740 $660
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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