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12345 [234]
3 years ago
9

Dehner Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on direct labor-hou

rs. The company based its predetermined overhead rate for the current year on the following data: Total direct labor-hours 94,000 Total fixed manufacturing overhead cost $ 404,200 Variable manufacturing overhead per direct labor-hour $ 4.00 Recently, Job P951 was completed with the following characteristics: Number of units in the job 50 Total direct labor-hours 100 Direct materials $ 660 Direct labor cost $ 9,400 The total job cost for Job P951 is closest to: (Round your intermediate calculations to 2 decimal places.)
Business
1 answer:
Zina [86]3 years ago
7 0

Answer:

Total cost= $10,890

Explanation:

<u>First, we need to calculate the predetermined overhead rate:</u>

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Predetermined manufacturing overhead rate= (404,200/94,000) + 4

Predetermined manufacturing overhead rate= $8.3 per direct labor hour

<u>Now, we can allocate overhead:</u>

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Allocated MOH= 8.3*100= $830

<u>Finally, the total cost of Job P951:</u>

Total cost= 660 + 9,400 + 830

Total cost= $10,890

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