Answered Essay: Dehner Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on direct labor-hours. The compa

Help Save& Exit Dehner 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 the following deta: Total direct labor-hours Total fixed manufacturing overhead cost Variable manufacturing overhead per direct labor-hours 2.e0 105,8e0 $399,880 Recently. Job P951 was completed with the following characteristics Number of units in the job Total direct labor-hours Direct materials Direct labor cost 50 180 $ 738 $1e,580 The unit product cost for Job P951 is closest to: (Round your intermediate calculetions to 2 decimal places.) Multiple Choice < Prev 15o, 30Ⅲ Next> here to search

Dehner 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 the following data: Recently. Job P951 was completed with the following characteristics: The unit product cost for Job P951 is closest to: (Round your intermediate calculations to 2 decimal places.) Multiple Choice

Expert Answer

 

Predetermined fixed mfg overhead rate = Estimated fixed overhead/Estimated direct labor hours = 399000/105000 = $3.8 per DLH
Predetermined variable mfg overhead rate (given) = $2.00 per DLH
Predetermined Total mfg overhead rate =3.8+2 = $5.8 per DLH
COST OF JOB P951:
Direct material cost $               730
Direct labor cost $         10,500
Manufacturing overhead assigned = 100*$5.8 = $               580
Total cost of the Job $         11,810
Number of units in the Job 50
Unit product cost for Job P951 = $11810/50 = $         236.2
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