(Solved) Comans Corporation has two production departments, Milling and Customizing. The company uses a ...

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

The amount of overhead applied in the Customizing Department to Job A319 is closest to: (Round your intermediate calculations to 2 decimal places.)

▸ $234.00

▸ $786.00

▸ $552.00

▸ $91,700.00

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Comans Corporation has two production departments, Milling and Customizing. The company uses a ...

Introduction to Managerial Accounting: Brewer Edition: 9e

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