Jordan Manufacturing Uses a Predetermined Overhead Allocation Rate Based on Direct

question 142

Multiple Choice

Jordan Manufacturing uses a predetermined overhead allocation rate based on direct labor cost.At the beginning of the year,it estimated the manufacturing overhead rate to be 30% times the direct labor cost.In the month of June,Jordan completed Job 13C,and its details are as follows: $\begin{array} { |l | l |} \hline \text { Direct materials cost } & \$ 6400 \\\hline \text { Direct labor cost } & \$ 21,000 \\\hline \text { Direct labor hours } & 34 \text { hours } \\\hline \text { Units of product produced } & 200 \\\hline\end{array}$ What is the cost per unit of finished product of Job 13C? (Round your answer to the nearest cent.)

• A) $168.50
• B) $146.60
• C) $137.05
• D) $136.50

---

Definitions:

Gains From Trade

The benefit that entities receive from engaging in voluntary trade, often resulting in better allocation of resources and increased efficiency.

Comparative Advantage

The proficiency of an entity, whether it's an individual, corporate body, or state, to create a good or offer a service at a more economical opportunity cost than its competition.

Opportunity Cost

The cost of forgoing the next best alternative when making a decision or choosing a particular course of action.

Comparative Advantage

The ability of an individual, firm, or country to produce a good or service at a lower opportunity cost than competitors, leading to more efficient global production patterns.