Snappy Company Has a Job-Order Costing System and Uses a Predetermined

question 6

Multiple Choice

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:

• A)$37.00
• B)$42.00
• C)$41.90
• D)$39.50

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