Lupo Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours.
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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 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:
a. $315,000
b. $252,000
c. $252,002
d. $63,000
Related Book For
Management and Cost Accounting
ISBN: 978-1405888202
4th edition
Authors: Alnoor Bhimani, Charles T. Horngren, Srikant M. Datar, George Foster
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