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 40,000 Total fixed manufacturing overhead cost $96.000 Variable manufacturing overhead per direct labor- $ 3.00 hour Recently, Job P951 was completed with the following characteristics: Number of units in the job Total direct laber-hours Direct materiale Direct labor cost 100 $ 755 $4,000 The unit product cost for Job P5 is closest to Round your intermed o o o of < Prev 7 of 10 Next >

Answer 1

Overhead rate = (96000/40000+3) = 5.4 per hour

direct material	755
Direct labor	4000
Manufacturing overhead (5.4*100)	540
Total Cost	5295
Unit	20
Unit product cost	264.75

So answer is c) $264.75