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

question 200

Multiple Choice

Gerstein 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 $90,000, variable manufacturing overhead of $3.70 per direct labor-hour, and 50,000 direct labor-hours. The company recently completed Job M800 which required 150 direct labor-hours.
-The amount of overhead applied to Job M800 is closest to:

• A) $270
• B) $1,380
• C) $825
• D) $555

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Definitions:

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