Lupo Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours. The

Question

2 months ago

5

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:
Total machine-hours 31,400
Total fixed manufacturing overhead cost $ 219,800
Variable manufacturing overhead per machine-hour $ 4
Recently, Job T687 was completed with the following characteristics:

Number of units in the job 10
Total machine-hours 20
Direct materials $ 580
Direct labor cost $ 1,160

The unit product cost for Job T687 is closest to: (Round your intermediate calculations to 2 decimal places.)

a.$196.00

b.$98.00

c.$80.00

d.$174.00

Business

2 answers:

Mariulka [3.8K] · Answer 1 · 2026-03-18T07:07:02+03:00

Response:

Unit Cost = $196

Clarification:

Based on the provided data from the question,

Total estimated variable overhead = 4×31,400 = $125,600

Total estimated overhead = $125,600 + $219,800 = $345,400

Predetermined overhead rate = $345,400 ÷ 31,400 = $11 per hour

Total overhead applied = $11 × 20 = $220

Therefore, total job cost = Direct material + Direct Labor + Total overhead

= $580 + $1,160 + $220

= $1,960

Thus, the Unit cost = $1,960 ÷ 10 = $196

soldi70 [3.6K] · Answer 2 · 2026-03-18T07:06:31+03:00

Response:

Option (a) represents the correct response to this inquiry.

Clarification:

Total estimated overhead vector=(4 * 31400)=$125600

Total estimated overhead= Estimated variable overhead + Estimated fixed overhead

=$125600 + 219800 = $345400

Normal overhead rate=$345400/31400=$11 per hour.

Total overhead applied=(11 * 20)=$220

Consequently, total job cost= Direct material + Direct labor + Total overhead

=(580+1160+220)

=$1960.

The final result is $196.00