Question

# Dehner Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on...

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 94,000 Total fixed manufacturing overhead cost \$ 404,200 Variable manufacturing overhead per direct labor-hour \$ 4.00 Recently, Job P951 was completed with the following characteristics: Number of units in the job 50 Total direct labor-hours 100 Direct materials \$ 660 Direct labor cost \$ 9,400 The unit product cost for Job P951 is closest to: (Round your intermediate calculations to 2 decimal places.)

Multiple Choice \$217.80 \$415.00 \$117.80 \$108.90

Predetermined overhead rate = [ Total fixed manufacturing overhead costs / Total direct labor hours ] + Variable manufacturing overhead rate per direct labor hour = [ \$404,200 / 94,000 hours ] + \$4 = \$4.3 + \$4 = \$8.3 per direct labor hour

Calculation of unit product cost for Job P951 :

 Direct materials \$660 (+) Direct labor cost \$9,400 (+) Manufacturing overhead [ Total direct labor hours used by Job P951 * Predetermined overhead rate = 100 hours * \$8.3 ] \$830 Product cost \$10,890 ( / ) Number of units in Job P951 50 Unit product cost \$217.80

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