Jordan Manufacturing uses a predetermined overhead allocation rate based on direct labor cost. At the beginning of the year, it estimated the manufacturing overhead rate to be 20% times the direct labor cost. In the month of June, Jordan completed Job 13C, and its details are as follows: $$\begin{array} { | l | r | }
\hline \text { Direct materials cost } & \$ 6460 \
\hline \text { Direct labor cost } & \$ 21,000 \
\hline \text { Direct labor hours } & 34 \text { hours } \
\hline \text { Units of product produced } & 210 \
\hline
\end{array}$$ What is the cost per unit of finished product of Job 13C? (Round your answer to the nearest cent.)

Question

Jordan Manufacturing uses a predetermined overhead allocation rate based on direct labor cost. At the beginning of the year, it estimated the manufacturing overhead rate to be 20% times the direct labor cost. In the month of June, Jordan completed Job 13C, and its details are as follows: $$\begin{array} { | l | r | } 
\hline \text { Direct materials cost } & \$ 6460 \
\hline \text { Direct labor cost } & \$ 21,000 \
\hline \text { Direct labor hours } & 34 \text { hours } \
\hline \text { Units of product produced } & 210 \
\hline
\end{array}$$ What is the cost per unit of finished product of Job 13C? (Round your answer to the nearest cent.)

Quizplus · Accepted Answer

The correct answer is A.The manufacturing overhead cost for Job 13C is $21,000 x 20% = $4,200. The total cost of Job 13C is $6,460 + $21,000 + $4,200 = $31,660. The cost per unit of finished product is $31,660 / 210 = $150.76.

Jordan Manufacturing Uses a Predetermined Overhead Allocation Rate Based on Direct