Principles of Cost Accounting
Principles of Cost Accounting
17th Edition
ISBN: 9781305087408
Author: Edward J. Vanderbeck, Maria R. Mitchell
Publisher: Cengage Learning
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Prather 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 50,000
Total fixed manufacturing overhead cost $ 285,000
Variable manufacturing overhead per direct labor-hour $ 3.80

Recently, Job P513 was completed with the following characteristics:

Number of units in the job 10
Total direct labor-hours 20
Direct materials $ 710
Direct labor cost $ 500

The estimated total manufacturing overhead is closest to:

A) 285,004

B) 190,000

C) 475,000

D) 285,000

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