es Lueckenhoff Corporation uses a job-order costing system with a single plantwi

Question

es Lueckenhoff 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 flxed manufacturing overhead cost of $497,000, varlable manufacturing overhead of $2.40 per direct labor-hour, and 70,000 direct labor-hours. The company has provided the following data concerning Job T498 which was recently completed: 01 34 34 Number of units in the job Total direct labor-hours Direct materials Direct labor cost 40 80 $ 950 $2,720 The amount of overhead applied to Job T498 is closest to: (Round your intermedlate calculations to 2 declmal places) Multiple Choice $568 Prev 6 of 25

Explanation / Answer

Predetermined overhead rate:

= $497,000/70,000

= $7.10

Overhead applied to T498:

= 80×$7.10

= $568

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