Curly Girl Manufacturing manufactures salon-quality hair dryers. Curly Girl appl

Question

Curly Girl Manufacturing manufactures salon-quality hair dryers. Curly Girl applies overhead based on direct labor hours. The company's predetermined overhead rate was based on an estimated 480,000 direct labor hours and $1,728,000 estimated total overhead. During November, the company manufactured 22,400 hair dryers in Job CG12 and incurred the following costs: Direct materials $103,040 Direct labor, 39,200 hours @ $18 Actual overhead incurred during the month $705,600 $148,960 What is the unit cost of the hair dryers produced in Job CG12? 0 $42.75 0 $36.10 O $42.40 O $24.23

Explanation / Answer

Predetermine overhead rate = 1728000/480000 = 3.60 per labour hour

Calculate unit cost :

so answer is c) $42.40

Direct material 103040 Direct labour 705600 Applied overhead (39200*3.6) 141120 Total product cost 949760 Units 22400 Unit product cost 42.40

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