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Lupo Corporation uses a job-order costing system with a single plantwide predete

ID: 2340794 • Letter: L

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:

Recently, Job T687 was completed with the following characteristics:

The total job cost for Job T687 is closest to: (Round your intermediate calculations to 2 decimal places.)

Garrison 16e Rechecks 2017-06-28

Multiple Choice

$1,800

$2,070

$1,110

$2,490

Total machine-hours 31,700 Total fixed manufacturing overhead cost $ 253,600 Variable manufacturing overhead per machine-hour $ 6

Explanation / Answer

Calculate unit product cost for Job T687 Particulars amount Direct Material 690 690 Direct labour cost 1380 1380 Fixed manufaturing overhead (8*30) 240 Variable manufacturing overhead(30*6) 180 Total job cost for T687 2490 Calculate fixed manufacturing overhead per machine hours fixed manufacturing overhead per machine hour = total fixed manufactring overehead cost/total machine hours fixed manufacturing overhead per machine hour = 253600/31700 fixed manufacturing overhead per machine hour = 8 hence total job cost for job T687 is $2490