Question 1.14 4 points Machine Gun Kelly Company uses a job-order costing system

Question

Question 1.14 4 points Machine Gun Kelly Company uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours. The company based its predetermined overhead rate for the current year on total fixed manufacturing overhead cost of $665,000, variable manufacturing overhead of $3.00 per machine-hour, and 70,000 machine-hours. Recently, Job T321 was completed with the following characteristics: 90 total machine hours were used to complete the job, direct material costs were $630, and direct labor costs were $2,880. If the job contained 30 units, the unit product cost is closest to: $51.50 O $154.50 $58.50 $117.00

Explanation / Answer

overhead rate fixed MOH (665,000/70,000) 9.5 Vaariable MOH 3 overhead rate 12.5 cost direct materials 630 direct labor 2,880 overhead applied (12.5*90) 1125 total cost 4635 unit product cost = 4635/30 154.5 answer

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