Irene Manufacturing Uses a Predetermined Overhead Allocation Rate Based on Direct

question 128

Multiple Choice

Irene Manufacturing uses a predetermined overhead allocation rate based on direct labor cost. At the beginning of the year, the company estimated total manufacturing overhead costs at $1,020,000 and total direct labor costs at $820,000. In June, Job 711 was completed. The details of Job 711 are shown below. $$\begin{array} { | l | r | } \hline \text { Direct materials cost } & \$ 21,500 \\\hline \text { Direct labor cost } & \$ 10,000 \\\hline \text { Direct labor hours } & 400 \text { hours } \\\hline \text { Units of product produced } & 200 \text { units } \\\hline\end{array}$$ How much was the cost per unit of finished product? (Round any percentages to two decimal places and your final answer to the nearest cent.)

• A) $157.50
• B) $197.70
• C) $169.70
• D) $219.70

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Definitions:

House Brand

A brand that is owned by a retailer or distributor rather than the manufacturer, often sold alongside branded products.

UPC Bar Code

A barcode used to uniquely identify products at the point of sale for pricing and inventory management.

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Marketing efforts to produce, promote, and reclaim environmentally sensitive products.

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