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

question 105

Multiple Choice

Beans 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 $162,000, variable manufacturing overhead of $2.80 per direct labor-hour, and 60,000 direct labor-hours. Recently, Job K818 was completed with the following characteristics:

-The amount of overhead applied to Job K818 is closest to:

• A) $135
• B) $140
• C) $415
• D) $275

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