Royal Furniture Co. 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 estimated manufacturing overhead cost of $720,000 and 30,000 machine-hours. The job sheet of Job F2412 shows that the number of units produced in this job order is 40 units. This job required 240 machine-hours and incurred direct materials cost of $350 and direct labor costs of $1,250. The unit product cost for Job F2412 is approximately: O a. $184 O b. $46 O c. $960 O d. $64 O e. None of the given answers

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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Royal Furniture Co. 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 estimated manufacturing overhead cost of
$720,000 and 30,000 machine-hours. The job sheet of Job F2412 shows that the number of units produced in this job order is 40
units. This job required 240 machine-hours and incurred direct materials cost of $350 and direct labor costs of $1,250. The unit
product cost for Job F2412 is approximately:
a. $184
b. $46
C. $960
d. $64
e.
None of the given answers.
Transcribed Image Text:Royal Furniture Co. 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 estimated manufacturing overhead cost of $720,000 and 30,000 machine-hours. The job sheet of Job F2412 shows that the number of units produced in this job order is 40 units. This job required 240 machine-hours and incurred direct materials cost of $350 and direct labor costs of $1,250. The unit product cost for Job F2412 is approximately: a. $184 b. $46 C. $960 d. $64 e. None of the given answers.
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