A. $1,450 B. $2,025 C. $1,725 D. $875 Please show me how you solved it, using an
ID: 2342552 • Letter: A
Question
A. $1,450
B. $2,025
C. $1,725
D. $875
Please show me how you solved it, using an visual step by step guide! Thanks!
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 30,700 337,700 4 4 Recently. Job T687 was completed with the following characteristics Number of units in the job 1 Total machine-hours Direct materials Direct labor cost 20 575 $1,150 The total job cost for Job T687 is closest to: (Round your intermediate calculations to 2 decimal places.)Explanation / Answer
Total Variable Manufacturing Overhead = Total Machine Hours * Variable Manufacturing Overhead Per Machine Hour
= $4 * 30,700
= $ 122,800
Predetermined Overhead Rate = (Total Fixed Manufacturing Overhead +Total Variable Manufacturing Overhead) / Total Machine Hours
= ( $ 337,700 + $ 122,800) / 30,700
= $ 15 Per Machine Hour
Manufacturing Overhead for Job T687 = Predetermined Overhead Rate * Total Machine Hours
= $ 15 Per Machine Hour * 20 Machine Hours
= $ 300
Total Job Cost for Job T687=
= Direct Materials + Direct Labor + Manufacturing Overhead
= $ 575 + $ 1150 +$ 300
= $ 2,025
Hence the correct answer is $ 2,025
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