Question
Snappy Company has a job-order cost system and uses a predetermined overhead rate based on direct labour hours to apply manufacturing overhead to jobs. Manufacturing
Snappy Company has a job-order cost system and uses a predetermined overhead rate based on direct labour hours to apply manufacturing overhead to jobs. Manufacturing overhead cost and direct labour 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 labour. The labour 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 in actual manufacturing overhead costs. If Job #334 contained 200 units, the average unit cost on the completed job cost sheet would be: Question 6 options: None of the choices $42.00 $37.00 $41.90 $39.50
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