Answer:
The correct answer is B.
Explanation:
Giving the following information:
Estimated overhead= $285,600
variable manufacturing overhead= $2.70 per machine-hour
Estimated machine-hours= 42,000
Job A496:
Number of units in the job 20
Total machine-hours 80
Direct materials $910
Direct labor cost $1,820
First, we need to allocate overhead to Job A496:
Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Estimated manufacturing overhead rate= (285,600/42,000) + 2.7
Estimated manufacturing overhead rate= $9.5 per machine hour
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Allocated MOH= 9.5*80= $760
Now, we can calculate the total cost:
Total cost= 910 + 1,820 + 760
Total cost= $3,490
Finally, we determine the unitary cost:
Unitary cost= 3,490/20= $174.5
