Johnson's Metal Works planned the following for the year ended 31 December 2019.
$$\begin{array} { l r }
\text { Factory overhead costs } & \$ 114000 \
\text { Direct labour cost } ( \$ 6.00 \text { an hour } ) \mathrm { x } ( 12000 \mathrm { hrs } ) & \$ 72000 \
\text { Machine hours } & 24000 \
\text { Direct material cost } & \$ 66000
\end{array}$$
The predetermined overhead rate is based on direct labour hours and planned production during 2019 is 6 000 units. The estimated cost per unit produced is:

Question

Johnson's Metal Works planned the following for the year ended 31 December 2019.
$$\begin{array} { l r } 
\text { Factory overhead costs } & \$ 114000 \
\text { Direct labour cost } ( \$ 6.00 \text { an hour } ) \mathrm { x } ( 12000 \mathrm { hrs } ) & \$ 72000 \
\text { Machine hours } & 24000 \
\text { Direct material cost } & \$ 66000
\end{array}$$
The predetermined overhead rate is based on direct labour hours and planned production during 2019 is 6 000 units. The estimated cost per unit produced is:

Quizplus · Accepted Answer

The Answer of Johnson's Metal Works planned the following for the year ended 31 December 2019.
$$\begin{array} { l r } 
\text { Factory overhead costs } & \$ 114000 \
\text { Direct labour cost } ( \$ 6.00 \text { an hour } ) \mathrm { x } ( 12000 \mathrm { hrs } ) & \$ 72000 \
\text { Machine hours } & 24000 \
\text { Direct material cost } & \$ 66000
\end{array}$$
The predetermined overhead rate is based on direct labour hours and planned production during 2019 is 6 000 units. The estimated cost per unit produced is:

Johnson's Metal Works Planned the Following for the Year Ended