lueckenhoff corporation uses a job order costing system

 lueckenhoff corporation uses a job order costing system

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: 40 Number of units in the job Total direct labor-hours 80 Direct materials $950 Direct labor cost $2,720 The predetermined overhead rate is closest to: 

A. $11.90 per direct labor-hour 

B. $7.10 per direct labor-hour 

C. $9.50 per direct labor-hour 

D. $240 per direct labor-hour


Answer:

C. $9.50 per direct labor-hour

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