Question 7
Decorte 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 the following data:
Total direct labor-hours 10,000
Total fixed manufacturing overhead cost $ 33,000
Variable manufacturing overhead per direct labor-hour $ 2.50
Recently, Job K332 was completed with the following characteristics:
Number of units in the job 70
Total direct labor-hours 140
Direct materials $ 455
Direct labor cost $ 5,320
The amount of overhead applied to Job K332 is closest to:
$\boxed{350}
$\boxed{1,162}
$\boxed{462}
$\boxed{812}
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