Question

# Lupo Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on...

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 30,700 Total fixed manufacturing overhead cost \$ 337,700 Variable manufacturing overhead per machine-hour \$ 4

Recently, Job T687 was completed with the following characteristics:

 Number of units in the job 10 Total machine-hours 20 Direct materials \$ 575 Direct labor cost \$ 1,150

The amount of overhead applied to Job T687 is closest to: (Round your intermediate calculations to 2 decimal places.)

Estimated total manufacturing overhead cost = Estimated total fixed manufacturing overhead cost + (Estimated variable overhead cost per unit of the allocation base × Estimated total amount of the allocation base) = \$337,700 + (\$4 per machine-hour × 30,700 machine-hours) = \$460,500

Predetermined overhead rate = Estimated total manufacturing overhead cost ÷ Estimated total amount of the allocation base = \$460,500 ÷ 30,700 machine-hours = \$15 per machine-hour

Overhead applied to a particular job = Predetermined overhead rate x Amount of the allocation base incurred by the job = \$15 per machine-hour × 20 machine-hours = \$300