Branin 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 $160,000, variable manufacturing overhead of $3.40 per direct labor-hour, and 80,000 direct labor-hours. The company has provided the following data concerning Job A578 which was recently completed: The predetermined overhead rate is closest to:
A) $8.80 per direct labor-hour
B) $2.00 per direct labor-hour
C) $3.40 per direct labor-hour
D) $5.40 per direct labor-hour

Question

Branin 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 $160,000, variable manufacturing overhead of $3.40 per direct labor-hour, and 80,000 direct labor-hours. The company has provided the following data concerning Job A578 which was recently completed:  The predetermined overhead rate is closest to:
A) $8.80 per direct labor-hour 
B) $2.00 per direct labor-hour 
C) $3.40 per direct labor-hour 
D) $5.40 per direct labor-hour

Quizplus · Accepted Answer

The Answer of Branin 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 $160,000, variable manufacturing overhead of $3.40 per direct labor-hour, and 80,000 direct labor-hours. The company has provided the following data concerning Job A578 which was recently completed:  The predetermined overhead rate is closest to:
A) $8.80 per direct labor-hour 
B) $2.00 per direct labor-hour 
C) $3.40 per direct labor-hour 
D) $5.40 per direct labor-hour

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