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		72,000
Total fixed manufacturing overhead cost	$	223,200
Variable manufacturing overhead per direct labor-hour	$	3.00

Recently, Job P951 was completed with the following characteristics:

Number of units in the job		20
Total direct labor-hours		100
Direct materials	$	890
Direct labor cost	$	7,200

The total job cost for Job P951 is closest to: (Round your intermediate calculations to 2 decimal places.)

Answer 1

Oh rate based on DLH
Total Manufacturing overheads				223200
Divide: Total DLH				72000
OH r ate per DLH				3.1
Total Cost of Job P951
Direct Material				890
Direct Labour				7200
Overheads (100 hours @ 3.10)				310
Total Cost of Job P951				8400