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 $ 6Explanation / 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
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