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

question 148

Multiple Choice

Irene Manufacturing uses a predetermined overhead allocation rate based on a percentage of direct labor cost.At the beginning of the year,the company estimated total manufacturing overhead costs at $1,000,000 and total direct labor costs at $820,000.In June,Job 711 was completed.The details of Job 711 are shown below. $$\begin{array} { | l | r | } \hline \text { Direct materials cost } & \$ 20,500 \\\hline \text { Direct labor cost } & \$ 11,000 \\\hline \text { Direct labor hours } & 500 \text { hours } \\\hline \text { Units of product produced } & 200 \text { units } \\\hline\end{array}$$
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) $202.60
• C) $169.60
• D) $224.60

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