(Solved) Columbo Corporation has two production departments, Forming and Finishing. The company uses a ...

Columbo Corporation has two production departments, Forming and Finishing. The company uses a job-order costing system and computes a predetermined overhead rate in each production department. The Forming Department’s predetermined overhead rate is based on machine-hours and the Finishing 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:

	Forming	Finishing
Machine-hours	17,000	10,000
Direct labor-hours	1,000	9,000
Total fixed manufacturing overhead cost	$ 110,500	$ 78,300
Variable manufacturing overhead per machine-hour	$ 1.60
Variable manufacturing overhead per direct labor-hour		$ 3.30

During the current month the company started and finished Job A948. The following data were recorded for this job:

Job A948:	Forming	Finishing
Machine-hours	70	30
Direct labor-hours	10	50
Direct materials	$ 650	$ 330
Direct labor cost	$ 380	$ 1,900

If the company marks up its manufacturing costs by 40% then the selling price for Job A948 would be closest to: (Round your intermediate calculations to 2 decimal places.)

▸ $6,197.80

▸ $1,770.80

▸ $4,427.00

▸ $6,818.00

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Columbo Corporation has two production departments, Forming and Finishing. The company uses a ...

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