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

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: Total machine-hours Total fixed manufacturing overhead cost variable manufacturing overhead per machine- hour 30,000 $252,000 2.10 0007:36 Recently, Job T687 was completed with the following characteristics: Nunber of units in the job Total machine-hours Direct materials Direct labor cost 10 30 $ 675 $1,050 The estimated total manufacturing overhead is closest to: Multiple Choice 315,000 5252,000 5252,002 563,000

Explanation / Answer

Estimated total manufacturing overhead = Variable manufacturing overhead+fixed manufacturing overhead   

                                                                = (30000*2.10+252000)

Estimated total manufacturing overhead = 315000

so answer is a) $315000

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