Arabica Manufacturing Company uses a predetermined manufacturing overhead rate based on a percentage of direct labor cost.
Question:
Arabica Manufacturing Company uses a predetermined manufacturing overhead rate based on a percentage of direct labor cost. At the beginning of 2012, they estimated total manufacturing overhead costs at $1,050,000, and they estimated total direct labor costs at $840,000. In June, 2012, Arabica completed job number 511. Job stats are as follows:
Direct materials cost....................................$27,500
Direct labor cost..........................................$13,000
Direct labor hours.....................................400 hours
Units of product produced:......................200 crates
How much was the cost per unit (cost per crate) of finished product? (Please round to the nearest cent.)
A) $374.38
B) $202.50
C) $254.50
D) $283.75
Fundamentals of Cost Accounting
ISBN: 978-0077398194
3rd Edition
Authors: William Lanen, Shannon Anderson, Michael Maher