Reference no: EM132611351

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                                       27,000                          12,000

Direct labor-hours                                   16,000                          8,000

Total fixed manufacturing overhead cost     $137,700                    $47,200

Variable manufacturing overhead per machine-hour  $1.30

Variable manufacturing overhead per direct labor-hour   $3.80

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                           10

Direct labor-hours 50                           40

Direct materials $630                           $170

Direct labor cost $700                            $510

Problem 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.)