Answer:
Total estimated manufacturing overhead= $315,000
Explanation:
Giving the following information:
Estimates:
Total machine-hours 30,000
Total fixed manufacturing overhead cost $ 252,000
Variable manufacturing overhead per machine-hour $ 2.10
Total estimated manufacturing overhead= fixed overhead + total variable overhead
Total estimated manufacturing overhead= 252,000 + 30,000*2.1
Total estimated manufacturing overhead= $315,000
Answer:
Manufacturing overhead applied 315
Total cost of Job T687 $2,040
Explanation:
Lupo Corporation
Estimated total manufacturing overhead cost = Estimated total fixed manufacturing overhead cost + Estimated variable overhead cost per unit of the allocation base × Estimated total amount of the allocation base
Hence:
$252,000 + ($2.10 per machine-hour × 30,000 machine-hours) = $252,000 + $63,000 = $315,000
Predetermined overhead rate = Estimated total manufacturing overhead cost ÷ Estimated total amount of the allocation base
= $315,000 ÷ 30,000 machine-hours = $10.50 per machine-hour
Overhead applied to a particular job = Predetermined overhead rate × Amount of the allocation base incurred by the job
= $10.50 per machine-hour × 30 machine-hours = $315
Direct materials$ 675
Direct labor 1,050
Manufacturing overhead applied 315
Total cost of Job T687 $2,040
Therefore the estimated total manufacturing overhead is closest to $315 and the Total cost of Job T687 is $2,040
