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 dа ta: 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:

a. $750

b. $516

c. $984

d. $234

Question

Business

Janetta

14 June, 22:28

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 dа ta: 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:

a. $750

b. $516

c. $984

d. $234

+2

Answers (1)

Know the Answer?

Dexter Shah · Answer 1

a. $750

Explanation:

we solve for the fixed overhead plantwide predetermined rate:

expected fixed cost / expected cost driver In this cas, achine hours

344,000 / 40,000 = 8.6

Job M759 has 60 machine hours which generates both, fixed overhead and variable overhead:

applied overhead:

60 MH x (8.6 fixed overhead + 3.90 variable overhead)

60 MH x $ 12.5 = 750