Thach Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours. The company based its predetermined overhead rate for the current year on total fixed manufacturing overhead cost of $665,000, variable manufacturing overhead of $3.00 per machine-hour, and 70,000 machine-hours. Recently, Job T321 was completed with the following characteristics: The unit product cost for Job T321 is closest to:
A) $117.00
B) $58.50
C) $154.50
D) $51.50

Question

Thach Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours. The company based its predetermined overhead rate for the current year on total fixed manufacturing overhead cost of $665,000, variable manufacturing overhead of $3.00 per machine-hour, and 70,000 machine-hours. Recently, Job T321 was completed with the following characteristics:  The unit product cost for Job T321 is closest to:
A) $117.00 
B) $58.50 
C) $154.50 
D) $51.50

Quizplus · Accepted Answer

The Answer of Thach Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours. The company based its predetermined overhead rate for the current year on total fixed manufacturing overhead cost of $665,000, variable manufacturing overhead of $3.00 per machine-hour, and 70,000 machine-hours. Recently, Job T321 was completed with the following characteristics:  The unit product cost for Job T321 is closest to:
A) $117.00 
B) $58.50 
C) $154.50 
D) $51.50

Thach Corporation Uses a Job-Order Costing System with a Single