The total job cost for Job T687 is closest to:A) $1,365B) $1,725C) $990D) $2,040

Question

Jesus Alvarez · Accepted Answer

Final Answer : D, Explanation :  Estimated total manufacturing overhead cost = Estimated total fixed manufacturing overhead cost + (Estimated variable overhead cost per unit of the allocation base × Estimated total amount of the allocation base)= $252,000 + ($2.10 per machine-hour × 30,000 machine-hours)= $252,000 + $63,000 = $315,000Predetermined overhead rate = Estimated total manufacturing overhead cost ÷ Estimated total amount of the allocation base = $315,000 ÷ 30,000 machine-hours = $10.50 per machine-hourOverhead applied to a particular job = Predetermined overhead rate x Amount of the allocation base incurred by the job = $10.50 per machine-hour × 30 machine-hours = $315

The total job cost for Job T687 is closest to:

A) $1,365
B) $1,725
C) $990
D) $2,040

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