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 70,000 Total fixed manufacturing overhead cost $ 273,000 Variable manufacturing overhead per direct labor-hour $ 6.00 Recently, Job P951 was completed with the following characteristics: Number of units in the job 50 Total direct labor-hours 100 Direct materials $ 680 Direct labor cost $ 7,000 The total job cost for Job P951 is closest to:

(Round your intermediate calculations to 2 decimal places.) Garrison 16e Rechecks 2017-06-22, 2017-08-01 Multiple Choice
a. $1,670
b. $7,990
c. $7,680
d. $8,670

Answer 1

d. $8,670

Step-by-step explanation:

expected overhead / expected driver = rate

273,000 / 70,000 = 3.9 fixed overhead

the cost of the job will be the sum of labor, material and overhead

Job 50:

materials 680

DL 7,000

overhead:

100 hours x (3.9 fixed + 6 variable) = 990

Total cost: 8.670‬