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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 30,300
Total fixed manufacturing overhead cost$575,700
Variable manufacturing overhead per machine-hour$4.00
Recently, Job T687 was completed with the following characteristics:
Number of units in the job 10
Total machine-hours 30
Direct materials$730
Direct labor cost$1,460
Question 1: The amount of overhead applied to Job T687 is closest to:
Multiple Choice
Option 1: $690.00
Option 2: $575.70
Option 3: $805.20
Option 4: $138.00
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