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

question 241

Essay

Meenach 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 80,000 direct labor-hours,total fixed manufacturing overhead cost of $160,000,and a variable manufacturing overhead rate of $2.30 per direct labor-hour.Recently Job X387 was completed and required 120 direct labor-hours.
Required:
Calculate the amount of overhead applied to Job X387.

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Definitions:

Equity Accounted Balance

A valuation method for the recognition of investments in associates, where the investment is initially recorded at cost and adjusted for the investor’s share of the net profit or loss of the investee.

Profit/(Loss)

The financial result of a company's operations and activities over a specific period, indicating net earnings or losses.

Associate Losses

Losses incurred from an investment in an associate, an entity over which the investor has significant influence but not control.