Question

TB MC Qu. 2-133 (Algo) Lupo Corporation uses a job-order... 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 Total fixed manufacturing overhead cost Variable manufacturing overhead per machine-hour Recently, Job T687 was completed with the following characteristics: 30,400 $425,600 $ 5 10 Number of units in the job Total machine-hours Direct materials Direct labor cost 20 $ 590 $1,180 The total job cost for Job T687 is closest to: (Round your intermediate calculations to 2 decimal places.)

Answer 1

Explanation -

according to given information

Estimated total manufacturing overhead cost= Estimated total fixed manufacturing overhead cost +Estimated variable (changable) overhead cost per unit of allocation base*Estimated total amount of the allocation base

=425600+(5*30400)

=425600+152000

= $ 577600

PREDETERMINED OVERHEAD RATE= ESTIMATED TOTAL MANUFACTURING OVERHEAD COST/ESTIMATED TOTAL AMOUNT OF THE ALLOCATION BASE

=577600/30400

= $ 19 PER MACHINE HOUR

OVERHEAD APPLIED TO A PARTICULAR JOB= PREDETERMINED OVERHEAD RATE*AMOUNT OF ALLOCATIONBASE INCUR BY JOB

=19*20

= $380

DIRECT MATERIAL $ 590

DIRECT LABOR 1180

MANUFACTURING OVERHEAD APPLIED 380

TOTAL COST OF JOB T687 $ 2150

TOTAL COST OF JOB (A) 2150

NUMBER OF UNITS (B) 10

UNIT PRODUCT COST (A) / (B) 215