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 |
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.)
▸ $4,098
▸ $3,415
▸ $2,846
▸ $569
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