Question

Beat 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 Total fixed manufacturing overhead cost Variable manufacturing overhead per machine-hour 40,000 $344,000 $ 3.90 Recently, Job M759 was completed. It required 60 machine-hours. The amount of overhead applied to Job M759 is closest to (Round your intermediate calculations to 2 decimal places.)

Answer 1

Plantwide predetermined overhead rate = ( Estimated total fixed manufacturing overhead / Estimated total machine hours ) + Estimated variable manufacturing overhead per machine hour = ( 344000 / 40000 ) + 3.90	12.50	per MH
Amount of overhead applied to M759 = Machine hours required * Plantwide predetermined overhead rate = 60 * 12.50	750