Lupo Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours. The company

Question

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 30,400 Total fixed manufacturing overhead cost $ 425,600 Variable manufacturing overhead per machine-hour $ 5 Recently, Job T687 was completed with the following characteristics: Number of units in the job 10 Total machine-hours 20 Direct materials $ 590 Direct labor cost $ 1,180 The total job cost for Job T687 is closest to . (Round your intermediate calculations to 2 decimal places.) Job-Order Costing: Under the job order costing system, each process is treated and accounted for separately as the system is used only when the produced goods are different from each other. Manufacturing overhead is allocated using a predetermined overhead rate and it comprises of both the variable component and the fixed component.

Saul Waters · Accepted Answer

$2,880Explanation:Given that,Total machine-hours = 30,300 Total fixed manufacturing overhead cost = $ 575,700Variable manufacturing overhead per machine-hour = $ 4.00For Job T687:Number of units in the job = 10Total machine-hours = 30 Direct materials = $730Direct labor cost = $1,460Total variable overhead estimated:= Variable manufacturing overhead per machine-hour Ã Total machine-hours= $4 Ã 30,300= $121,200Total overhead estimated:= Total variable overhead estimated + Total fixed overhead estimated= $121,200 + $575,700= $696,900Predetermined overhead rate:= Total overhead estimated Ã· Total machine-hours= $696,900 Ã· Â 30,300= $23 per machine hourTotal overhead applied:= predetermined overhead rate Ã Total machine hours for Job T687= $23 Ã 30= $690Total job cost:= Direct material + Direct labor + Total overhead= $730 + $1,460 + $690= $2,880

Saul Waters · Answer

job T687 total cost 2,151â¬ dollarsExplanation: 425,600 / 30,400 = 14 fixed overhead rate14 fixed Â + 5 variable = 19Job T687applied overhead:ovehread 20 machine hours x 19 = 381now we add the three cost components for the total cost:direct materials Â  Â  Â  590direct Labor Â  Â  Â  Â  Â  Â 1,180overhead Â  Â  Â  Â  Â  Â  Â  Â  381 Â  Â  Â  Â  Â  Â  Â  total Â  Â  Â  Â  2,151â¬

Saul Waters · Answer

Manufacturing overhead applied 315Total cost of Job T687 $2,040Explanation:Lupo CorporationEstimated total manufacturing overhead cost = Estimated total fixed manufacturing overhead cost + Estimated variable overhead cost per unit of the allocation base Ã Estimated total amount of the allocation base Hence: $252,000 + ($2.10 per machine-hour Ã 30,000 machine-hours) = $252,000 + $63,000 = $315,000Predetermined overhead rate = Estimated total manufacturing overhead cost Ã· Estimated total amount of the allocation base = $315,000 Ã· 30,000 machine-hours = $10.50 per machine-hourOverhead applied to a particular job = Predetermined overhead rate Ã Amount of the allocation base incurred by the job = $10.50 per machine-hour Ã 30 machine-hours = $315Direct materials$ 675Direct labor 1,050Manufacturing overhead applied 315Total cost of Job T687 $2,040Therefore the estimated total manufacturing overhead is closest to $315 and the Total cost of Job T687 is $2,040

Saul Waters · Answer

Selling price= $273Explanation:Giving the following information: The company based its predetermined overhead rate for the current year on the following data: Total machine-hours 32,600 Total fixed manufacturing overhead cost $ 195,600 Variable manufacturing overhead per machine-hour $ 4.00.Job T687 was completed with the following characteristics: Number of units in the job 10 Total machine-hours 30 Direct materials $ 550 Direct labor cost $ 1,100First, we need to calculate the estimated manufacturing overhead rate we need to use the following formula:Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base Estimated manufacturing overhead rate= (195,600/32,600) + 4= $10 per machine hourNow, we need to calculate the total cost per unit:Unitary cost= direct material + direct labor + allocated overheadUnitary cost= (550/10) + (1,100/10) + (10*30)/10= $195Selling price= 195*1.4= $273

Saul Waters · Answer

The amount of overhead applied to Job T687 is closest to: $280.Explanation:Predetermined rate = Budgeted Overheads / Budget Activity Â  Â  Â  Â  Â  Â  Â  Â  Â  Â  Â  Â  Â  Â  Â  Â  Â = $ 425,600 / Â 30,400 Â  Â  Â  Â  Â  Â  Â  Â  Â  Â  Â  Â  Â  Â  Â  Â  Â = $14.00 per machine-hourApplied overheads to job T687 = Predetermined rate Ã Actual machine hours used Â  Â  Â  Â  Â  Â  Â  Â  Â  Â  Â  Â  Â  Â  Â  Â  Â  Â  Â  Â  Â  Â  Â  Â  Â  Â  Â = Â $14.00 Ã 20 Â  Â  Â  Â  Â  Â  Â  Â  Â  Â  Â  Â  Â  Â  Â  Â  Â  Â  Â  Â  Â  Â  Â  Â  Â  Â  Â = Â $280Conclusion :The amount of overhead applied to Job T687 is closest to: $280.

Saul Waters · Answer

Total cost= $1,900Explanation:Giving the following information: Total machine-hours 32,600 Total fixed manufacturing overhead cost $ 195,600 Variable manufacturing overhead per machine-hour $ 4.00 Job T687:Total machine-hours 30 Direct materials $ 550 Direct labor cost $ 1,100First, we need to calculate the predetermined overhead rate:Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation basePredetermined manufacturing overhead rate= (195,600/32,600) + 4Predetermined manufacturing overhead rate= $10 per machine hourNow, we can determine the total cost:Total cost= direct material + direct labor + allocated overheadTotal cost= 500 + 1,100 + 10*30Total cost= $1,900

Saul Waters · Answer

Total cost= $2,040Explanation:Giving the following information:Total machine-hours 30,000 Total fixed manufacturing overhead cost $ 252,000 Variable manufacturing overhead per machine-hour $ 2.10 Job T687:Total machine-hours 30 Direct materials $675 Direct labor cost $1,050First, we need to calculate the estimated overhead rate:Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation baseEstimated manufacturing overhead rate= (252,000/30,000) +2.1= $10.5 per machine-hourNow, we can calculate the total cost of Job T687:Total cost= direct material + direct labor + allocated overheadTotal cost= 675 + 1,050 + (10.5*30)= $2,040

Saul Waters · Answer

Total estimated manufacturing overhead= $315,000Explanation:Giving the following information:Estimates:Total machine-hours 30,000 Total fixed manufacturing overhead cost $ 252,000 Variable manufacturing overhead per machine-hour $ 2.10 Total estimated manufacturing overhead= fixed overhead + total variable overheadTotal estimated manufacturing overhead= 252,000 + 30,000*2.1Total estimated manufacturing overhead= $315,000

Ms. Mara Collier

Lupo Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours. The company

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