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 30,400Total fixed manufacturing overhead cost $ 425,600Variable manufacturing overhead per machine-hour $ 5Recently, Job T687 was completed with the following characteristics:Number of units in the job 10Total machine-hours 20Direct materials $ 590Direct labor cost $ 1,180The total job cost for Job T687 is closest to ____

Answer 1

Answer:

job T687 total cost 2,151‬ dollars

Explanation:

$\frac{Cost\: Of \:Manufacturing \:Overhead}{Cost \:Driver}= Overhead \:Rate$

425,600 / 30,400 = 14 fixed overhead rate

14 fixed  + 5 variable = 19

Job T687

applied overhead:

ovehread 20 machine hours x 19 = 381

now we add the three cost components for the total cost:

direct materials       590

direct Labor            1,180

overhead                 381

              total         2,151‬