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 26,000 29,000
Direct labor-hours 11,000 5,000
Total fixed manufacturing overhead cost $ 153,400 $ 18,500
Variable manufacturing overhead per machine-hour $ 1.30
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 70 30
Direct labor-hours 50 60
Direct materials $ 450 $ 190
Direct labor cost $ 580 $ 570
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
a. $563
b. $2,816
c. $3,379
d. $4,055

c. $3,379

Explanation:

Calculate the Product Costs first as follows:

Direct Materials :

Milling                                                                                          $ 450

Customizing                                                                                 $ 190

Direct Labor :

Milling                                                                                          $ 580

Customizing                                                                                $ 570

Variable Overheads :

Variable manufacturing overhead : Milling ($ 1.30 ×70)              $ 91

Variable manufacturing overhead : Customizing ($ 5.00×60) $300

Fixed Overheads :

Milling ( $ 153,400/ 26,000 × 70)                                                $413

Customizing ( $ 18,500/5,000 × 60)                                           $222

Total Cost                                                                                    $2,816

To find Selling Price add a 20% Mark -up on Cost

Total Cost               $2,816.00

Add Mark-up 20%    $563.20

Selling Price           $3,379.20

support your answer using the data presented. (5 points). 4. based on the information you used to schedule and curve, which product would you recommend the shoe hut focus on, and why? provide details that support your answer. (5 points).

answer; /// multipotentialite means a person who have many different interests and creative pursuits in life; (one true calling);

polymath; means a person   of wide-ranging knowledge or learning;

scanner; means; a device that captures images from photographic prints,posters,magazine pages.ect;