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

question 120

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:

What is the cost per unit of finished product of Job 13C? (Round your answer to the nearest cent. )

• A)$154.08
• B)$131.30
• C)$124.12
• D)$130.00

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Definitions:

Unemployment Compensation

Government-provided financial assistance to individuals who are unemployed and meet certain eligibility requirements.

Automatic Stabilizer

Economic policies and programs, such as unemployment insurance and progressive taxes, that automatically help stabilize an economy by reducing the severity of economic fluctuations without additional government intervention.

Disposable Income

The residual financial power of households for savings and consumption post the subtraction of income taxes.

Inflationary Pressure

Situations where upward trends in prices are predicted due to factors such as increased production costs or rising demand.