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 Total fixed manufacturing overhead cost Variable nanufacturing overhead per direct labor-hour 40,000 96,000 $ 3.00 Recently, Job P951 was completed with the following characteristics: Number of units in the job Total direct labor-hours Direct materials Direct labor cost 20 100 두 755 $4,000 The predetermined overhead rate is closest to: $2.40 per direct labor-hour $3.00 per direct labor-hour $8.40 per direct labor-hour $5.40 per direct labor-hour

Answer 1

Solution:- $5.40 per direct labor-hour

Explanation:-

Estimated Fxed manufacturing overhead	$ 96,000
Estimated variable manufacturing overhead (40,000 * $3)	$ 120,000
Estimated total manufacturing overhead cost	$ 216,000
Divide by Estimated total machine-hours (MHs)	40,000
= Predetermined overhead rate	$ 5.4

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