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.)

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter4: Activity-based Costing
Section: Chapter Questions
Problem 30P: Primera Company produces two products and uses a predetermined overhead rate to apply overhead....
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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 16,000 11,000
Direct labor-hours 18,000 6,000
Total fixed manufacturing overhead cost $ 92,800 $ 28,800
Variable manufacturing overhead per machine-hour $ 1.20  
Variable manufacturing overhead per direct labor-hour   $ 5.00

 

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 40
Direct labor-hours 60 30
Direct materials $ 430 $ 180
Direct labor cost $ 800 $ 540

 

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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