Levron 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 total fixed manufacturing overhead cost of $58,000, variable manufacturing overhead of $2.00 per machine-hour, and 20,000 machine-hours. The company has provided the following data concerning Job P978 which was recently completed: Number of units in the job 20 Total machine-hours 80 Direct materials $ 500 Direct labor cost $2,640 The amount of overhead applied to Job P978 is closest to: (Round your intermediate calculations to 2 decimal places.) Multiple Choice $392 $552 $160 $232
Levron 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 total fixed manufacturing overhead cost of $58,000, variable manufacturing overhead of $2.00 per machine-hour, and 20,000 machine-hours. The company has provided the following data concerning Job P978 which was recently completed: Number of units in the job 20 Total machine-hours 80 Direct materials $ 500 Direct labor cost $2,640 The amount of overhead applied to Job P978 is closest to: (Round your intermediate calculations to 2 decimal places.) Multiple Choice $392 $552 $160 $232
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:Levron 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 total fixed manufacturing overhead cost of $58,000, variable manufacturing overhead of $2.00 per machine-hour, and 20,000
machine-hours. The company has provided the following data concerning Job P978 which was recently completed:
Number of units in the job
20
Total machine-hours
80
Direct materials
$ 500
Direct labor cost
$2,640
The amount of overhead applied to Job P978 is closest to: (Round your intermediate calculations to 2 decimal places.)
Multiple Choice
$392
$552
$160
$232
Transcribed Image Text:Gerstein 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 $90,000, variable manufacturing overhead of $3.70 per direct labor-hour,
and 50,000 direct labor-hours. The company recently completed Job M800 which required 150 direct labor-hours.
The predetermined overhead rate is closest to:
Multiple Choice
$1.80 per direct labor-hour
$9.20 per direct labor-hour
$5.50 per direct labor-hour
$3.70 per direct labor-hour
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