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$ 6.80 67,000 $227,800 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 $ 660 $6,700 The total job cost for Job P951 is closest to: (Round your intermediate calculations to 2 decimal places.)

Explanation / Answer

Predetermined overhead rate

= Budgeted overhead / Budgeted labor hours

= $227,800 / 67,000

= $3.4 per direct labor hour

Calculations

C – Variable overhead

= Variable overhead rate x Number of labor hours

= $6 x 100

= $600

D – Fixed overhead

= Fixed overhead rate x Number of labor hours

= $3.40 x 100

= $340

Calculations Particulars Amount $ A Direct materials            660 B Direct labor         6,700 C Variable overhead            600 D Fixed Overhead            340 E = Sum A to D Total Job Cost         8,300

Related Questions

Navigate

• Browse (All)
• Browse D
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.