Question

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 96,000 Total fixed manufacturing overhead cost $499,200 Variable manufacturing overhead per direct labor-hour $ 2.00 Recently, Job P951 was completed with the following characteristics: Number of units in the job Total direct labor-hours Direct materials Direct labor cost 100 100 $ 640 $9,600 The total job cost for Job P951 is closest to: (Round your intermediate calculations to 2 decimal places.) Multiple Choice O $10,320 $10.32 0 0 0 $10,960

Answer 1

1)	Predetermined overhead rate per labor hour = ($499200/96000) +$2
			=$5.2+$2
			=$7.2	per LHs
	Total Job Cost for Job P951
	Direct Materials	$        640
	Direct Labor	$    9,600
	Overhead Cost	$        720
	Total	$ 10,960
	Correct Option: LAST
2)	Predetermined overhead rate per machine hour = ($581400/32300 hrs) +$2
	=$18+ 2
	=$20 per machine hour
	Overhead applied = total machine hours * predetermined overhead rate
	=40*$20
	=$800
	Correct Option: FIRST
3)	Predetermined overhead rate per labor hour = ($972095/39500) +$6.58
	=$24.61+ 6.58
	=$31.19 per labor hour
	Correct Option: FIRST
4)	Correct Option: FIRST

Please Upvote.