Question

Bolander 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 70,000 $294,000 $ 2.30 Recently, Job M825 was completed with the following characteristics: Number of units in the job Total machine-hours Direct materials Direct labor cost 20 80 $ 665 $1,840 The amount of overhead applied to Job M825 is closest to: (Round your intermediate calculations to 2 decimal places.)

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Answer Predetermined Overhead rate = Il Variable manufacturing overhead rate + Fixed manufacturing overhead rate 2.3 + (294,000 / 70,000) 2.3+4.2 $ 6.50 per machine hour = II Amount of Overhead applied to Job M825 is closest to Total Machine hours * Predetermined Overhead rate 80 * 6.5 $ 520 Answer =