Question
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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