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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-hours30,300

Total fixed manufacturing overhead cost$575,700

Variable manufacturing overhead per machine-hour$4.00

Recently, Job T687 was completed with the following characteristics:

Number of units in the job10

Total machine-hours30

Direct materials$730

Direct labor cost$1,460

The amount of overhead applied to Job T687 is closest to:

Multiple Choice

  • $690.00
  • $575.70
  • $805.20
  • $138.00

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