Lueckenhoff Corporation Uses a Job-Order Costing System with a Single

Multiple Choice

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: The estimated total manufacturing overhead is closest to:

A) $665,000
B) $497,002
C) $497,000
D) $168,000