Question

# Comans Corporation has two production departments, Milling and Customizing. The company uses a job-order costing system...

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 16,000 23,000 Direct labor-hours 6,000 9,000 Total fixed manufacturing overhead cost \$ 92,800 \$ 36,000 Variable manufacturing overhead per machine-hour \$ 1.90 Variable manufacturing overhead per direct labor-hour \$ 3.40

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 50 10 Direct labor-hours 30 30 Direct materials \$ 410 \$ 180 Direct labor cost \$ 760 \$ 540

If the company marks up its manufacturing costs by 20% then the selling price for Job A319 would be closest to: (Round your intermediate calculations to 2 decimal places.)

Garrison 16e Rechecks 2017-06-22, Garrison 16e Rechecks 2019-08-02

Multiple Choice

• \$3,596

• \$2,996

• \$2,497

• \$499

Solution:-

If the company marks up its manufacturing costs by 20% then the selling price for Job A319 would be closest to:-

\$2,996

Explanation:-

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