Columbo Corporation Has Two Production Departments, Forming and Finishing

Multiple Choice

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

A) $6,197.80
B) $1,770.80
C) $4,427.00
D) $6,818.00