Lupo Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours. The company based its predetermined overhead rate for the current year on the following data:
Total machine-hours 31,400
Total fixed manufacturing overhead cost $219,800
Variable manufacturing overhead per machine-hour $4
Recently, Job T687 was completed with the following characteristics:
Number of units in the job 10
Total machine-hours 20
Direct materials $580
Direct labor cost $1,160
The unit product cost for Job T687 is closest to:
a. $196.00
b. $98.00
c. $80.00
d. $174.00
Answers: 1
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