Reference no: EM132506924

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                                     18,000                 13,000

Direct labor-hours                                    4,000                    7,000

Total fixed manufacturing overhead cost      $113,400             $64,400

Variable manufacturing overhead per machine-hour $1.60

Variable manufacturing overhead per direct labor-hour   $3.90

• 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          60                       10

Direct labor-hours       20                         60

Direct materials        $655                          $305

Direct labor cost         $400                     $1,200

Question 1: 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.)