Carradine 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 total fixed manufacturing overhead cost of $105,000, variable manufacturing overhead of $3.00 per machine-hour, and 70,000 machine-hours. The company recently completed Job P233 which required 60 machine-hours. The amount of overhead applied to Job P233 is closest to: (Round your intermediate calculations to 2 decimal places.)
A) $90
B) $270
C) $450
D) $180

Question

Quizplus · Accepted Answer

The predetermined overhead rate is $105,000 / 70,000 machine-hours = $1.50 per machine-hour. The amount of overhead applied to Job P233 is $1.50 per machine-hour * 60 machine-hours = $90.

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