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C) 760.00 D) 152.00 Lupo Corporation uses a job-order costing system with a sing

ID: 2336222 • Letter: C

Question

C) 760.00

D) 152.00

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 32,500 $455,000 $ 5.00 01:08:51 Recently, Job T687 was completed with the following characteristics: Number of units in the job Total machine-hours Direct materials Direct labor cost 10 40 $ 710 $1,420 The amount of overhead applied to Job T687 is closest to: Multiple Choice $455.00 $875.60

Explanation / Answer

Predetermine overhead ratae = (455000/32500)+5.00 = 19 per machine hour

Amount of overhead applied = 19*40 = $760

So answer is c) $760