Asked by Prabha Karki on Apr 28, 2024
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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. (Do not round intermediate calculations.)
Variable Manufacturing Overhead
Costs of manufacturing that fluctuate with the level of production, such as utilities or commissions, excluding direct materials and direct labor.
Fixed Manufacturing Overhead
Indirect production costs that remain constant, regardless of the level of production output, such as salaries or rent.
Direct Labor-Hours
An accounting metric denoting the hours worked by employees directly involved in manufacturing goods or providing services, crucial for cost allocation and pricing.
- Tabulate the overhead attributed to distinct projects.
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Learning Objectives
- Tabulate the overhead attributed to distinct projects.
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