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 31,800 Total fixed manufacturing overhead cost \$ 159,000 Variable manufacturing overhead per machine-hour \$ 2

Recently, Job T687 was completed with the following characteristics:

 Number of units in the job 10 Total machine-hours 30 Direct materials \$ 660 Direct labor cost \$ 1,320

The unit product cost for Job T687 is closest to: (Round your intermediate calculations to 2 decimal places.)

Multiple Choice

\$87.00

\$198.00

\$219.00

\$73.00

Beat 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 40,000 Total fixed manufacturing overhead cost \$ 344,000 Variable manufacturing overhead per machine-hour \$ 3.90

Recently, Job M759 was completed. It required 60 machine-hours. The amount of overhead applied to Job M759 is closest to: (Round your intermediate calculations to 2 decimal places.)

Multiple Choice

\$984

\$234

\$516

\$750

Parido Corporation has two manufacturing departments--Casting and Assembly. The company used the following data at the beginning of the year to calculate predetermined overhead rates:

 Casting Assembly Total Estimated total machine-hours (MHs) 8,000 2,000 10,000 Estimated total fixed manufacturing overhead cost \$ 44,000 \$ 4,200 \$ 48,200 Estimated variable manufacturing overhead cost per MH \$ 1.90 \$ 3.00

During the most recent month, the company started and completed two jobs--Job A and Job H. There were no beginning inventories. Data concerning those two jobs follow:

 Job A Job H Casting machine-hours 5,400 2,600 Assembly machine-hours 800 1,200

Assume that the company uses a plantwide predetermined manufacturing overhead rate based on machine-hours. The amount of manufacturing overhead applied to Job H is closest to: (Round your intermediate calculations to 2 decimal places.)

Multiple Choice

\$18,044

\$8,328

\$26,372

\$18,316

 Q1. Answer is \$ 219 Explanation Pre-determined OH rate: Fixed Manufacturing OH rate (159000/31800): 5 variable Manufacturing OH rate 2 Pre-determined OH rate: 7 Unit Product cost: Direct material 660 Direct labour 1320 OH (30 MH @7) 210 Total cost 2190 Units 10 Unit Product cost: 219 Q2. Answer is \$ 750 Explanation Pre-determined OH rate: Fixed Manufacturing OH rate (344000/40000): 8.6 variable Manufacturing OH rate 3.9 Pre-determined OH rate: 12.5 OH applied (60 MH @12.50): 750 Q3. Answer is \$26372 Explanation: Pre-determined OH rate for Plant Fixed Manufacturing OH rate (48200/10000): 4.82 variable Manufacturing OH rate (8000*1.90+2000*3.00)/10000 2.12 Pre-determined OH rate: 6.94 Pre-determined OH rate for Assembly Fixed Manufacturing OH rate (4200/ 2000): 2.1 variable Manufacturing OH rate 3 Pre-determined OH rate: 5.1 manufacturing OH in Job H: Total machine hours (2600+1200) 3800 OH rate 6.94 OH applied to Job H 26372

#### Earn Coins

Coins can be redeemed for fabulous gifts.