Jordan Manufacturing Uses a Predetermined Overhead Allocation Rate Based on a Percentage

question 92

Multiple Choice

Jordan Manufacturing uses a predetermined overhead allocation rate based on a percentage of 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: $$\begin{array} { | l | r | } \hline \text { Direct materials cost } & \$ 6,400 \\\hline \text { Direct labor cost } & \$ 21,000 \\\hline \text { Direct labor hours } & 34 \text { hours } \\\hline \text { Units of product produced } & 200 \\\hline\end{array}$$ 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

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Definitions:

Charging Interest

The act of lending money or capital with the expectation of receiving payment back plus additional money, known as interest, which serves as the cost of borrowing.

Corporate Profits

Corporate profits denote the earnings of a company after all expenses, taxes, and costs have been subtracted from total revenue.

Proprietors' Profits

The earnings retained by the owners after all expenses have been deducted from the gross income of an unincorporated business.

National Income

The total value of all income earned by the residents of a country in a given period, including wages, profits, and investment returns.