Comans Corporation has two production departments, Milling and Customizing. The company uses a job-order costing system
Posted: Thu May 19, 2022 2:07 pm
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:
During the current month the company started and finished
Job A319. The following data were recorded for this job:
If the company marks up its manufacturing costs by 20% then the
selling price for Job A319 would be closest to:
$2775
$3996
$3330
$555
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:
During the current month the company started and finished
Job A319. The following data were recorded for this job:
If the company marks up its manufacturing costs by 20% then the
selling price for Job A319 would be closest to:
$2775
$3996
$3330
$555