Kostelnik Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours. The company based its predetermined overhead rate for the current year on total fixed manufacturing overhead cost of $468,000, variable manufacturing overhead of $2.10 per machine-hour, and 72,000 machine-hours. The company has provided the following data concerning Job A496 which was recently completed: Number of units in the job Total machine-hours Direct materials Direct labor cost 10 80 $ 930 $ 1,860 The unit product cost for Job A496 is closest to: Note: Round your intermediate calculations to 2 decimal places. Multiple Choice

Kostelnik Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours. The company based its predetermined overhead rate for the current year on total fixed manufacturing overhead cost of $468,000, variable manufacturing overhead of $2.10 per machine-hour, and 72,000 machine-hours. The company has provided the following data concerning Job A496 which was recently completed: Number of units in the job Total machine-hours Direct materials Direct labor cost 10 80 $ 930 $ 1,860 The unit product cost for Job A496 is closest to: Note: Round your intermediate calculations to 2 decimal places. Multiple Choice

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Description: Kostelnik Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours. The company based itspredetermined overhead rate for the current year on total fixed manufacturing overhead cost of $46

FINANCIAL ACCOUNTING

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ISBN:9781259964947

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Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Concept explainers

Variance Analysis

In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.

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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Question

Kostelnik Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours. The company based its
predetermined overhead rate for the current year on total fixed manufacturing overhead cost of $468,000, variable manufacturing overhead of $2.10 per machine-hour,
and 72,000 machine-hours. The company has provided the following data concerning Job A496 which was recently completed:
Number of units in the job
Total machine-hours
Direct materials
Direct labor cost
The unit product cost for Job A496 is closest to:
Note: Round your intermediate calculations to 2 decimal places.
Multiple Choice
O
O
$279.00
$34.88
$43.48
10
80
$ 930
$ 1,860
$347.80

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Step 2: Calculation for pre-determined overhead rate:

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Step 3: Calculation for overhead applied- Job A496

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Step 4: Calculation for unit product cost-Job A496

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