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 47,000 Total fixed manufacturing overhead cost $ 202,100 Variable manufacturing overhead per direct labor-hour $ 2.00 Recently, Job P951 was completed with the following characteristics: Number of units in the job 50 Total direct labor-hours 100 Direct materials $ 850 Direct labor cost $ 4,700
The unit product cost for Job P951 is closest to: (Round your intermediate calculations to 2 decimal places.)
Ans:
Calculation of unit product cost of Job P951 |
|
Particulars |
Amount in ($) |
Direct material |
$ 850 |
Direct labour |
$ 4,700 |
variable overheads (100*2) |
$ 200 |
Fixed overheads (100*4.30) |
$ 430 |
Total Product Cost |
$ 6180 |
Number of units |
50 |
Unit product cost (6180/50) |
123.60 |
Note 1: |
|
fixed overhead rate |
|
Total fixed manufacturing Overhead |
$ 202,100 |
Total direct labour hours |
47000 |
fixed manufacturing overhead rate per hour |
4.30 |
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