Sivret Corporation uses a job-order costing system with a single plantwide prede
ID: 2532912 • Letter: S
Question
Sivret Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours. The company based ts predetermined overhead rate for the current year on the following data Total machine-hours Total fixed manufacturing overhead cost variable manufacturing overhead per machine-hour 8e,e8e $624,e08 $3.1e Recently, Job M598 was completed with the following characteristics: Number of units in the job Total machine-hours Direct materials Direct labor cost 60 ??? S 645 $9,880 The amount of overhead applied to Job M598 Is closest to: (Round your Intermedlate calculations to 2 decimal places.) Mutiple Cholce $4.20? $2.340 $3,270Explanation / Answer
Total variable overhead=(3.1*80000)=$248000
Hence Total overhead=Total variable overhead+Total fixedoverhead
=(248000+624000)=$872000
Hence predetermined overhead rate=Total overhead/Total machine hours
=(872000/80000)=$10.9/machine hours
Hence applied overhead=($10.9*300 machine hours)
which is equal to
=$3270.