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 40,000 Total fixed manufacturing overhead cost \$ 96,000 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 \$ 755 Direct labor cost \$ 4,000

The amount of overhead applied to Job P951 is closest to:

Ans.

*Calculations of variable manufacturing overhead cost:

Variable overhead cost = Variable overhead cost per direct labor hour * Estimated direct labor hours

= \$3.00 * 40,000

= \$120,000

*Calculation of total estimated overhead cost:

= \$120,000 + \$96,000

= \$216,000

Predetermined overhead rate = Total estimated overhead cost / Estimated direct labor hours

= \$216,000 / 40,000

= \$5.40 per direct labor-hour

= 100 * \$5.40

= \$540

#### Earn Coins

Coins can be redeemed for fabulous gifts.

##### Need Online Homework Help?

Most questions answered within 1 hours.

##### Active Questions
• can you answer this essay questions 1. Describe three of the key knowledge areas that define...
• Compare the American Counselors Association (ACA) code of ethics regarding continuing education to the National Association...
• Python Jupyter Notebook An acronym is a word formed by taking the first letters of the...
• Question posed after chapter 4.5 of differential equations class, book by p. blanchard, 4th edition :...
• Below are some crude cause-specific mortality rates from the two studies. Crude mortality rate per 100,000...
• A computer chess game and a human chess champion are evenly matched. They play twelve games....