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 64,000 Total fixed manufacturing overhead cost $678,400 Variable manufacturing overhead per direct labor-hour $ 5.00 Recently, Job P951 was completed with the following characteristics: Number of units in the job 30 Total direct labor-hours 300 Direct materials $ 1,350 Direct labor cost $ 11,400

A. The plantwide estimated total manufacturing overhead is:

B. The plantwide predetermined overhead rate is:

C. The amount of overhead applied to Job P951 is:

D. The total job cost for Job P951 is:

E. The unit product cost for Job P951 is:

Answer 1

Total variable overhead estimated=(64000*5)=$320,000

a.Total manufacturing overhead estimated=Total variable overhead estimated+Total fixed overhead estimated

=(320,000+678400)=$998400

b.predetermined overhead rate=Estimated overhead/Estimated direct labor hours

=998400/64000

=$15.6 per direct labor hour

c.Applied overhead=predetermined overhead rate*Actual direct labor hours

=(15.6*300)=$4680

d.Total cost of job=Direct materials+Direct labor+Total overhead applied

=(1350+11400+4680)=$17430

e.Unit product cost=17430/30

=$581