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

question 168

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 54,000 direct labor-hours, total fixed manufacturing overhead cost of $54,000, and a variable manufacturing overhead rate of $2.40 per direct labor-hour. Recently Job X387 was completed and required 210 direct labor-hours.Required:Calculate the amount of overhead applied to Job X387. (Do not round intermediate calculations.)

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Definitions:

IRR Rate

The Discount rate that makes the net present value (NPV) of all cash flows from a particular project equal to zero, used to assess the profitability of investments.

Time Value Of Money

The concept that money available in the present is worth more than the same amount in the future due to its earning capacity.

Initial Cash Outlay

The immediate amount of cash required to initiate a project, investment, or purchase.

Conventional

Based on or in accordance with what is generally done or believed.