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Snappy Company has a job-order costing system and uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead to jobs. Manufacturing overhead cost and direct labor hours were estimated at $100,000 and 40,000 hours, respectively, for the year. In July, Job #334 was completed at a cost of $5,000 in direct materials and $2,400 in direct labor. The labor rate is $6 per hour. By the end of the year, Snappy had worked a total of 45,000 direct labor-hours and had incurred $110,250 actual manufacturing overhead cost.
-If Job #334 contained 200 units,the unit product cost on the completed job cost sheet would be:
Flat Fee
A pricing structure where a single fixed charge is applied for a service, irrespective of usage or time required.
Intangible Benefits
These are advantages that cannot be easily measured in monetary terms, such as brand reputation or employee morale.
Discount Rate
The rate used in discounted cash flow analysis to determine the present value of future cash flows, reflecting the opportunity cost of capital.
Salvage Value
The estimated residual value of an asset at the end of its useful life, important for calculating depreciation.
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