Lueckenhoff 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 $497,000, variable manufacturing overhead of $2.40 per direct labor-hour, and 70,000 direct labor-hours. The company has provided the following data concerning Job T498 which was recently completed:Number of units in the job40Total direct labor-hours80Direct materials$ 950Direct labor cost$ 2,720The predetermined overhead rate is closest to:
A. $11.90 per direct labor-hour
B. $2.40 per direct labor-hour
C. $9.50 per direct labor-hour
D. $7.10 per direct labor-hour
Answer: C
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Which of the following items used for resolving intra-firm comparisons is not generally disclosed?
A. Deferred tax assets related to property plant and equipment. B. Adjustments to deferred tax assets related to asset sales. C. Depreciation methodology - straight line or accelerated. D. Differences between book and tax depreciation.
The product-process matrix illustrates that low volume, one-of-a-kind products are ideally suited to a job shop process
Indicate whether the statement is true or false.
A corporation reported net income of $2,730,000 and paid preferred cash dividends of $120,000 during the current year. There were 600,000 weighted-average shares of common stock outstanding and the market price per common share at year-end was $58.30. Calculate the company's price-earnings ratio.
What will be an ideal response?
The target return figure is zero for an organization that sets a price level that will just recover costs.
Answer the following statement true (T) or false (F)