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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 | 30,000 |
---|---|
Total fixed manufacturing overhead cost | $ 252,000 |
Variable manufacturing overhead per machine-hour | $ 2.10 |
Recently, Job T687 was completed with the following characteristics:
Number of units in the job | 10 |
---|---|
Total machine-hours | 30 |
Direct materials | $ 675 |
Direct labor cost | $ 1,050 |
The estimated total manufacturing overhead is closest to:
Multiple Choice
$315,000
$252,000
$252,002
$63,000
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