For 2011 The Iron Works planned the following: $\begin{array}{lr}
\text { Factory overhead costs } & \$ 180,000 \
\text { Direct labour cost }(\$ 8.00 \text { an hour) x (15000 hrs) } & \$ 120,000 \
\text { Machine hours } & 48,000 \
\text { Direct material cost } & \$ 108,000
\end{array}$
The predetermined overhead rate is based on direct labour hours and planned production during 2011 is 12000 units. The estimated cost per unit produced is:
a.$ 34
b.$ 28.60
c.$ 25
d.$ 19

Question

For 2011 The Iron Works planned the following: $\begin{array}{lr}
\text { Factory overhead costs } & \$ 180,000 \
\text { Direct labour cost }(\$ 8.00 \text { an hour) x (15000 hrs) } & \$ 120,000 \
\text { Machine hours } & 48,000 \
\text { Direct material cost } & \$ 108,000
\end{array}$
The predetermined overhead rate is based on direct labour hours and planned production during 2011 is 12000 units. The estimated cost per unit produced is:
a.$ 34 
b.$ 28.60 
c.$ 25
d.$ 19

Quizplus · Accepted Answer

The Answer of For 2011 The Iron Works planned the following: $\begin{array}{lr}
\text { Factory overhead costs } & \$ 180,000 \
\text { Direct labour cost }(\$ 8.00 \text { an hour) x (15000 hrs) } & \$ 120,000 \
\text { Machine hours } & 48,000 \
\text { Direct material cost } & \$ 108,000
\end{array}$
The predetermined overhead rate is based on direct labour hours and planned production during 2011 is 12000 units. The estimated cost per unit produced is:
a.$ 34 
b.$ 28.60 
c.$ 25
d.$ 19

For 2011 the Iron Works Planned the Following The Predetermined Overhead Rate Is Based on Direct Labour Hours