t4

Harootunian 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		80,000
Total fixed manufacturing overhead cost	$	312,000
Variable manufacturing overhead per machine-hour	$	2.10

Recently, Job T629 was completed with the following characteristics:

Number of units in the job		50
Total machine-hours		200

The predetermined overhead rate is closest to:

Multiple Choice

• $8.10 per machine-hour

• $2.10 per machine-hour

• $3.90 per machine-hour

• $6.00 per machine-hour