Curly Girl Manufacturing manufactures salon-quality hair dryers.Curly Girl applies overhead based on direct labor hours.The company's predetermined overhead rate was based on an estimated 480,000 direct labor hours and $1,728,000 estimated total overhead.During November,the company manufactured 22,400 hair dryers in Job CG12 and incurred the following costs: What is the

Question

Curly Girl Manufacturing manufactures salon-quality hair dryers.Curly Girl applies overhead based on direct labor hours.The company's predetermined overhead rate was based on an estimated 480,000 direct labor hours and $1,728,000 estimated total overhead.During November,the company manufactured 22,400 hair dryers in Job CG12 and incurred the following costs:  What is the

Quizplus · Accepted Answer

First, we need to calculate the predetermined overhead rate:
Predetermined Overhead Rate = Estimated Total Overhead / Estimated Direct Labor Hours
Predetermined Overhead Rate = $1,728,000 / 480,000 = $3.60 per direct labor hour

Next, we need to calculate the overhead cost incurred for Job CG12:
Overhead Cost = Predetermined Overhead Rate x Actual Direct Labor Hours
Overhead Cost = $3.60 x 16,800 direct labor hours (given in the table) = $60,480

Finally, we need to calculate the total cost for Job CG12:
Total Cost = Direct Materials + Direct Labor + Overhead
Total Cost = $38.06 + $33.12 + $60,480 = $60,551.18

The cost per unit can be calculated as:
Cost per Unit = Total Cost / Number of Units Produced
Cost per Unit = $60,551.18 / 22,400 = $2.70

Therefore, the answer is:
B) $42.40

Curly Girl Manufacturing Manufactures Salon-Quality Hair Dryers