Assume that a company pays a 5% sales commission Also, assume the job cost sheet for Job X shows that (1) it used 18 direct tabor-hours and incurred direct materials and direct labor charges of $500 and $360, and (2) its unit product cost is $27.35. If Job X contained 40 units, then what is the plantwide predetermined overhead rate per direct labor-hour?
a. $15.00
b. $60.78
c. $13.00
d. $47.78

Respuesta :

Answer:

c. $13.00

Explanation:

The computation of the plantwide predetermined overhead rate is given below;

Given that

Direct labor hour used = 18

Direct material cost = $500

Direct labor cost = $360

Unit product cost = $27.35

So,  

Total cost of Job = Number of unit × Unit product cos

= 40 × 27.35

= $1,094

Now

Total cost of Job = Direct material cost + Direct labor cost + Overhead applied

1,094 = 500 + 360 + Overhead applied

Overhead applied = $234

Now

Overhead applied = Direct labor hour used × Plantwide predetermined overhead rate

234 = 18 × Plantwide predetermined overhead rate

Plantwide predetermined overhead rate = $13 per direct labor hour

The plantwide predetermined overhead rate per direct labor-hour is $13 per DLH

Given Information

Direct labor hour used = 18

Direct material cost = $500

Direct labor cost = $360

Unit product cost = $27.35

Total cost of Job = Number of unit × Unit product cost

Total cost of Job = 40 × 27.35

Total cost of Job = $1,094

Total cost of Job = Direct material cost + Direct labor cost + Overhead applied

1,094 = 500 + 360 + Overhead applied

Overhead applied = $234

Overhead applied = Direct labor hour used × Plantwide predetermined overhead rate

234 = 18 × Plantwide predetermined overhead rate

Plantwide predetermined overhead rate = $13 per direct labor hour

Hence, the plantwide predetermined overhead rate per direct labor-hour is $13 per DLH.

Therefore, the Option C is correct.

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