Question

Carradine 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 total fixed manufacturing overhead cost of $105,000, variable manufacturing overhead of $3.00 per machine-hour, and 70,000 machine-hours. The company recently completed Job P233 which required 60 machine-hours. The amount of overhead applied to Job P233 is closest to: (Round your intermediate calculations to 2 decimal places.)Garrison 16e Rechecks 2017-06-28a. $270b. $180c. $90d. $450

Answer 1

Answer:

Amount of overhead applied is  $270

correct option is  (a) $270

Explanation:

given data

overhead cost = $105,000

overheat rate = $3 per machine hour

manufacturing overhead = 70000 machine hour

required = 60 machine hours

to find out

The amount of overhead applied to Job P 233 is closest to

solution

we find manufacturing overhead rate here that is

manufacturing overhead rate = $\frac{overhead cost}{manufacturing overhead}$

put here value

manufacturing overhead rate =  $\frac{105000}{70000}$

manufacturing overhead rate = 1.5 per machine hour  

and

Total manufacturing overhead rate will be for overheat rate $3

Total manufacturing overhead rate = (3 + 1.5) = $4.5 per machine hour

so we can say that Amount of overhead is job P 233 is

Amount of overhead applied = 60 × $4.5 = 270

so here correct option is  (a) $270