4 Dehner Corporation uses a joborder costing system with a s

4 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 54,000 $259,200 $6.00 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 $ 640 $5,400 The unit product cost for Job P951 is closest to: (Round your intermediate calculations to 2 decimal places.)

Solution

Total variable overhead=(6*54000)=$324000

Total overheads=(324000+259200)=$583200

Hence overhead/unit=(583200/54000)=$10.8/direct labor hours

Hence total unit product cost=direct material+Direct labor+overheads

=640+5400+(10.8*100)=$7120

Hence unit product cost=($7120/25)

which is equal to

=$284.80