Sivret 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 80,000
Total fixed manufacturing overhead cost $ 624,000
Variable manufacturing overhead per machine-hour $ 3.10
Recently, Job M598 was completed with the following characteristics:

Number of units in the job 60
Total machine-hours 300
Direct materials $ 645
Direct labor cost $ 9,000
The amount of overhead applied to Job M598 is closest to:

$930

$4,200

$2,340

$3,270

Respuesta :

Answer:

$3,270

Explanation:

Total machine-hours 80,000

Total fixed manufacturing overhead cost $ 624,000

Overhead absorption rate = 624,000/80,000 = $7.8

Variable manufacturing overhead per machine-hour $ 3.10

Total machine-hours 300

Fixed overheads = $7.8

Total Fixed overheads = 300 X 7.8 = $2,340

Total variable overheads = 300 X 3.1 = $930

Total overheads = $2,340 + $930 = $3,270