Beans Corporation uses a job-order costing system with a single plantwide predet

Question

Beans Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on direct labor-hours. The company based its predetermined overhead rate for the current year on total fixed manufacturing overhead cost of $162,000, variable manufacturing overhead of $2.80 per direct labor-hour, and 60,000 direct labor-hours. Recently, Job K818 was completed with the following characteristics:

The estimated total manufacturing overhead is closest to:

Multiple Choice

$330,000

$162,000

$168,000

$162,003

Number of units in the job 10 Total direct labor-hours 50 Direct materials $ 920 Direct labor cost $ 1,400

Explanation / Answer

Estimated total manufacturing overhead = 162000+(60000*2.8)= $330000

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