Doakes Corporation uses a job-order costing system with a single plantwide predetermined overhead rate of $8.50 per direct labour hour. The company based its predetermined overhead rate for the current year on the following estimated data: Total direct labor-hours Total fixed manufacturing overhead cost Variable manufacturing overhead per direct labor-hour Recently, Job M843 was completed with the following characteristics: Number of units in the job Total direct labor-hours Direct materials Direct labor cost The unit product cost for Job M843 is $67.50 $27.50 $33.75 60 120 $ 630 $ 2,400 60,000 $ 378,000 $2.20
Doakes Corporation uses a job-order costing system with a single plantwide predetermined overhead rate of $8.50 per direct labour hour. The company based its predetermined overhead rate for the current year on the following estimated data: Total direct labor-hours Total fixed manufacturing overhead cost Variable manufacturing overhead per direct labor-hour Recently, Job M843 was completed with the following characteristics: Number of units in the job Total direct labor-hours Direct materials Direct labor cost The unit product cost for Job M843 is $67.50 $27.50 $33.75 60 120 $ 630 $ 2,400 60,000 $ 378,000 $2.20
Chapter1: Financial Statements And Business Decisions
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Variance Analysis
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Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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Transcribed Image Text:Doakes Corporation uses a job-order costing system with a single plantwide
predetermined overhead rate of $8.50 per direct labour hour.
The company based its predetermined overhead rate for the current year on the
following estimated data:
Total direct labor-hours
Total fixed manufacturing overhead cost
Variable manufacturing overhead per direct labor-hour
Recently, Job M843 was completed with the following characteristics:
Number of units in the job
Total direct labor-hours
Direct materials
Direct labor cost
The unit product cost for Job M843 is
$67.50
$27.50
$33.75
60
120
$ 630
$ 2,400
60,000
$ 378,000
$ 2.20
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