Answer:
Job 334 total cost: $ 8,400
Unit cost: 8,400 / 200 = $ 42
Explanation:
Total cost: Material + Labor + Overhead
Material: 5,000
Labor: 2,400
<u></u>
<u>Overhead:</u>
![\frac{Cost\: Of \:Manufacturing \:Overhead}{Cost \:Driver}= Overhead \:Rate](https://tex.z-dn.net/?f=%5Cfrac%7BCost%5C%3A%20Of%20%5C%3AManufacturing%20%5C%3AOverhead%7D%7BCost%20%5C%3ADriver%7D%3D%20Overhead%20%5C%3ARate)
We distribute the expected cost over the expected base:
expected cost: 100,000
cost driver: 40,000 labor hours
cost per hour: 100,000 / 40,000 = <u>2.5 predetermined overhead</u>
Now we multiply this rate by the hours of the job to know Applied Overhead:
job labor hours x overhead rate:
Job #334 had 2,400 labor cost / $6 rate per hour = 400 hours
400 x 2.5 = 1,000
Total cost: 5,000 + 2,400 + 1,000 = 8,400