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: 30,300 Total machine-hours Total fixed manufacturing overhead cost Variable manufacturing overhead per machine-hour $575,700 4.00 16 Recently, Job T687 was completed 699 Number of units the job Total machine-hours Direct materials Direct labor cost $1, The amount of overhead applied to Job T687 is closest to NO Choice 8 O seos 20 $690.00

Answer 1

1) Overhead rate = 575700/30300+4 = 23 per Machine hour

Overhead applied = 23*30 = 690

So answer is c) $690

2) Overhead rate = (455000/70000+2.90) = 9.40 per hour

Direct material	760
Direct labor	1520
Overhead (80*9.40)	752
Total manufacturing cost	3032
Markup	606.40
Selling price	3638.40
Selling price per unit (3638.40/20)	181.92

So answer is b) $181.92

3) Overhead rate = (1242700/42500+6.60) = 35.84 per hour

So answer is c) 35.84 per hour

4) Journal entry

Date	account and explanation	Debit	Credit
	Work in process	467000
	Raw material		467000

So answer is a)