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

question 18

Multiple Choice

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: Recently, Job T687 was completed with the following characteristics:
The predetermined overhead rate is closest to:

• A) $12.60 per machine-hour
• B) $10.50 per machine-hour
• C) $8.40 per machine-hour
• D) $2.10 per machine-hour

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Definitions:

Incentive Pay

Additional compensation awarded to employees as a means of encouraging increased productivity or performance.

Subjective Performance

An evaluation of an employee's work based on personal judgments or opinions, rather than measurable outcomes or metrics.

Spot Award

A one-time recognition given to an employee for exceptional performance or a significant achievement.

Gainsharing Award

A type of incentive program where employees receive financial bonuses based on improvements in the company's performance, which they contributed to.