Question

Dehner Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on direct lebo hours. The company based its predetermined overhead rate for the current year on the following data Total direct labor-hours Total fixed manufacturing overhead cost Variable manufacturing overhead per direct labor-hour 105,000 $399,000 $ 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 50 100 $ 730 $10.500 The unit product cost for Job P95t is closest to (Round your intermediate calculations to 2 decimal places) o $20000 O $13620 S1810

Answer 1

Estimated direct labor hours = 105,000

Estimated fixed manufacturing overhead = $399,000

Variable manufacturing overhead = $2 per direct labor hour

Predetermined overhead rate = Variable manufacturing overhead + Estimated fixed manufacturing overhead/Estimated direct labor hour

= 2+399,000/105,000

= 2+3.8

= $5.8 per direct labor hour

Total direct labor hours used = 100

Overhead applied to Job P90 = Total machine hours used x Predetermined overhead rate

= 100 x 5.8

= $580

Job Cost Sheet (Job P951)
Direct materials	730
Direct labor cost	10,500
Overhead applied	580
Total Cost	$11,810

The total cost assigned to Job P951 = $11,810

The unit product cost for Job P951 = Total cost assigned to Job P951 / Number of units in the job

= 11,810/50

= $236.20

First option is correct.

Kindly comment if you need further assistance. Thanks‼!