Question

Help Save & Exit 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 Miling 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 25,000 15,000 $132,500 $ 1.80 Machine-hours Direct labor-hours Total fixed manufacturing overhead cost Variable manufacturing overhead per machine- hour Variable manufacturing overhead per direct labor-hour Customizing 10,000 4,000 $22,000 $ 3.90 During the current month the company started and finished Job A319. The following data were recorded for this job: Job A319 Milling Customizirl Machine-hours 70 20 Direct labor-hours 30 40 Direct materials $ 630 $ 170 Direct labor cost $ 740 $ 510 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.) Multiple Choice

Answer 1

Answer
	Milling	Customizing	Total
Direct materials	630	170	$    800
Direct labor cost	740	510	$ 1,250
Variable overhead	126	156	$    282
	(1.80*70)	(40*3.90)
Fixed overhead	371	220	$    591
	(132500/25000)*70	(22000/4000)*40
			$ 2,923
Ans: Selling Price	= 2923 * 110%		$ 3,215