Biology Forums - Study Force

Spang Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours. The company based its predetermined overhead rate for the current year on the following data:

Total machine-hours	20,000
Total fixed manufacturing overhead cost	$ 176,000
Variable manufacturing overhead per machine-hour	$ 2.20

Recently, Job P505 was completed with the following characteristics:

Total machine-hours	200
Direct materials	$ 540
Direct labor cost	$ 7,200

The total job cost for Job P505 is closest to:

▸ $9,400

▸ $9,940

▸ $7,740

▸ $2,740

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