Meenach Corporation uses a joborder costing system with a si

Meenach 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 79,000 direct labor-hours, total fixed manufacturing overhead cost of $158,000, and a variable manufacturing overhead rate of $4.10 per direct labor-hour. Recently Job X387 was completed and required 300 direct labor-hours.

Required:

Calculate the amount of overhead applied to Job X387.

Solution

fixed overheads = (158000/79000)*300=$600

variable overheads=300*4.10=$1230

amount of overheads applied to job x387=$1830