Question

Comans Corporation has two production departments, Maling and Customing 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 Customering 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 mama actung Overhead per machine- Milling 22,000 13,000 $85,100 $ 1.20 Customizing 11,000 3,000 $9,000 Variable manufacturing overhead per direct $ 3.50 During the current month the company started and finished Job A319. The following data were recorded for this job Milling Customizing Jobb A319 Machine-hours D et tabos Direct materials Direct labor cost $ 690 $ 530 $ 140 $320 If the company marks up its manufacturing costs by 10 then the selling price for Job A319 would be closest to