Branin Corporation Uses a Job-Order Costing System with a Single

question 213

Multiple Choice

Branin Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on direct labor-hours. The company based its predetermined overhead rate for the current year on total fixed manufacturing overhead cost of $160,000, variable manufacturing overhead of $3.40 per direct labor- hour, and 80,000 direct labor-hours. The company has provided the following data concerning Job A578 which was recently completed: The predetermined overhead rate is closest to:

• A) $8.80 per direct labor-hour
• B) $2.00 per direct labor-hour
• C) $3.40 per direct labor-hour
• D) $5.40 per direct labor-hour