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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-hours 30,200 Total fixed manufacturing overhead cost $120,800 Variable manufacturing overhead per machine- $ 6.00 hour Recently, Job T687 was completed with the following characteristics: 10 Number of units in the job Total machine-hours 40 Direct materials $ 710 Direct labor cost $1,410 The total job cost for Job T687 is closest to: Job 910 was recently completed. The following data have been recorded on its job cost sheet: Direct materials $2,465 Direct labor-hours 73 labor-hours Direct labor wage rate $ 18 per labor-hour 135 machine-hours Machine-hours The Corporation applies manufacturing overhead on the basis of machine-hours. The predetermined overhead rate is $19 per machine-hour. The total cost that would be recorded on the job cost sheet for Job 910 would be: Multiple Choice $3,779 $3,668 $6,344 $7,184 Dacker Products is a division of a major corporation. The following data are for the most recent year of operations: Sales $36,580,000 Net operating income Average operating assets The company's minimum required rate of return $2,858,960 $ 8,100,000 15% The division's residual income is closest to: Multiple Choice $4,073,960 $1,643,960 $2,858,960 $(3,077,840)
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