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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 33,000
Total fixed manufacturing overhead cost $ 660,000
Variable manufacturing overhead per machine-hour $ 6

Recently, Job T687 was completed with the following characteristics:

Number of units in the job 10
Total machine-hours 40
Direct materials $ 715
Direct labor cost $ 1,430

The amount of overhead applied to Job T687 is closest to: (Round your intermediate calculations to 2 decimal places.)

Multiple Choice

  • $208.00

  • $1,040.00

  • $1,167.40

  • $660.00

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