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

Multiple Choice

Kubes 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 $3.50 per direct labor-hour, and 30,000 direct labor-hours. The company has provided the following data concerning Job A477 which was recently completed:

-The total amount of overhead applied in both departments to Job T288 is closest to:

A) $508
B) $672
C) $1,688
D) $1,180