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 amount of overhead applied to Job T687 is closest to:

Answer 1

ovelhead cost Estimated total manufacturing = Estimated total fined manufacturing overhead cost + (Estimated variable cost per unit of the allocation base & Estimated total number of allocation base] $ 2,52,000 + ( $2.10 + 30,000 machine hours) $2,52,000 + $63,000 $ 315000 of allocation Predetermined overhead rate - Estimated total mo manufacturing overhead cost - Estimated to tal amount / no base $315000 & 30,000 machine hows $10.5 per machine hour job. Overhead applied to a particular job = predetermined overhead rake x Nog the allocation base incurred by the jou $10.5 per machine hour 30% machine hours $315 $675 Dirut materials Dirut labour $1050 $315 Manyoutusing overhead applied The amount of overhead applied to Job T6 87 is closest to $315.