Irene Manufacturing Uses a Predetermined Overhead Allocation Rate Based on Direct

question 101

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. $$\begin{array} { | l | l | } \hline \text { Direct materials cost } & \$ 21,500 \\\hline \text { Direct labor cost } & \$ 10,000 \\\hline \text { Direct labor hours } & 400 \text { hours } \\\hline \text { Units of product produced } & 200 \text { units } \\\hline\end{array}$$ 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:

Basalt

A dark, fine-grained volcanic rock formed from the rapid cooling of basaltic lava exposed at or very near the surface of a planet or moon.

Island Arc

A series of volcanic islands shaped in a curve situated along the junction of tectonic plates, usually created over a plate being forced downward.

Hawaiian Islands

An archipelago located in the Pacific Ocean, formed by volcanic activity from a hot spot beneath the Earth’s crust.

Aleutian Islands

a chain of islands located in the Northern Pacific Ocean, forming part of the Alaska state boundary.