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

Multiple Choice

Beans 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 $162,000, variable manufacturing overhead of $2.80 per direct labor-hour, and 60,000 direct labor-hours. Recently, Job K818 was completed with the following characteristics: The predetermined overhead rate is closest to:

A) $5.50 per direct labor-hour
B) $8.30 per direct labor-hour
C) $2.80 per direct labor-hour
D) $2.70 per direct labor-hour