Question

Job 910 was recently completed. The following data have been recorded on its job cost sheet:

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: Total direct labor-hours 85,000 Total fixed manufacturing overhead cost $ 306,000 Variable manufacturing overhead per direct labor-hour $ 6.00 Recently, Job P951 was completed with the following characteristics: Number of units in the job 25 Total direct labor-hours 100 Direct materials $ 700 Direct labor cost $ 8,500 The total job cost for Job P951 is closest to: (Round your intermediate calculations to 2 decimal places.)

The Corporation applies manufacturing overhead on the basis of machine-hours. The predetermined overhead rate is $16 per machine-hour. The total cost that would be recorded on the job cost sheet for Job 910 would be:

Answer 1

Direct Material	$     700.00
Direct Labour	$ 8,500.00
Variable manufacturing unit = 9.60* x 100MH	$     960.00
Total Cost	$10,160.00
Unit Product Cost = $10160/25 units	$     406.40
* Predetermined overhead rate = Estimated total manufacturing overhead cost ÷ Estimated total amount of the allocation base
Predetermined overhead rate = [306000+(6*85000)]/85000	$       9.600