Comans Corporation Has Two Production Departments, Milling and Customizing

question 215

Multiple Choice

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:

• A) $5,042.00
• B) $4,584.00
• C) $3,820.00
• D) $764.00

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