4. When job 711 was completed, direct materials totaled $18,237 direct labor, $2

Question

4. When job 711 was completed, direct materials totaled $18,237 direct labor, $23,064 and factory overhead, $12,336, respectively. Units produced totaled 2,823. What are unit costs?

$19

15. A manufacturing company applies factory overhead based on direct labor hours. At the beginning of the year, it estimated that factory overhead costs would be $356,519 and direct labor hours would be 42,418. Actual manufacturing overhead costs incurred were $315,072, and actual direct labor hours were 53,597. What is the predetermined overhead rate per direct labor hour?

Select the correct answer.

$53,637 $2,823 $41,301

$19

15. A manufacturing company applies factory overhead based on direct labor hours. At the beginning of the year, it estimated that factory overhead costs would be $356,519 and direct labor hours would be 42,418. Actual manufacturing overhead costs incurred were $315,072, and actual direct labor hours were 53,597. What is the predetermined overhead rate per direct labor hour?

Select the correct answer.

$5.88 $8.40 $6.65 $7.43

Explanation / Answer

Answer: (First Question)- Question 14.

Cost Sheet :  job 711

Direct material   $18,237

Direct Labour $23,064

Factory Overhead $12,336

Total Cost: $53,637

No of units produced   2,823 Nos

Cost per unit: $19

Question - 15:

Predetermined overhead rate per direct labor hour = Estimated Factory Overhead/ Estimated Direct Labour Hour

= $356,519/ 42,418 = $8.40 (Ans)

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