Dehner Corporation uses a job-order costing system with a single plantwide prede

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 Total fixed manufacturing overhead cost Variable manufacturing overhead per direct labor-hour 44,000 $224,400 $ 5.00 Recently, Job P951 was completed with the following characteristics: Number of units in the job Total direct labor-hours Direct materials Direct labor cost 25 100 $ 750 $4,400 The unit product cost for Job P951 is closest to: (Round your intermediate calculations to 2 decimal places.)

Explanation / Answer

Correct answer is option A $246.40

Calculation of unit product cost for JOB P951

Direct materials

$750

Direct labor

$4400

Variable manufacturing overhead(100*5)

$500

Fixed manufacturing overhead cost

($2,24,400 / 44000 Hours)*100

$510

Total product cost

6160

So Product cost per unit (6160/25 units)

246.4

Direct materials

$750

Direct labor

$4400

Variable manufacturing overhead(100*5)

$500

Fixed manufacturing overhead cost

($2,24,400 / 44000 Hours)*100

$510

Total product cost

6160

So Product cost per unit (6160/25 units)

246.4

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