Multiple Choice
Gerstein 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 $90,000, variable manufacturing overhead of $3.70 per direct labor-hour, and 50,000 direct labor-hours. The company recently completed Job M800 which required 150 direct labor-hours.
-The amount of overhead applied to Job M800 is closest to:
A) $270
B) $1,380
C) $825
D) $555
Correct Answer:

Verified
Correct Answer:
Verified
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