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Lupo Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours. The company based its predetermined overhead rate for

Lupo Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours. The company based its predetermined overhead rate for the current year on the following data:

Total machine-hours30,500

Total fixed manufacturing overhead cost $610,000

Variable manufacturing overhead per machine-hour$6.00

Recently, Job T687 was completed with the following characteristics:

Number of units in the job 10

Total machine-hours 30

Direct materials. $690

Direct labor cost $1,370

The total job cost for Job T687 is closest to:

Multiple Choice

  • $2,150
  • $2,060
  • $1,470
  • $2,840

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