# Snappy Company has a job-order costing system and uses a predetermined overhead rate based on direct labor-hours to apply manufacturing

## This Post Has 3 Comments

1. litzyguzman13 says:

The correct answer is option (A) $42.00 Explanation: Solution Given that: The established rate is given as = 100,000/40,000 =$2.5 per hour

Thus

The cost of the job is shown is shown below:

The direct material = $5,000 The direct labor =$2400

Then

The manufacturing overheard is = 400 * 2.5 = $1,000 So, The total cost is =$5,000 + $2400 +$1000 = $8,400 To get our unit cost, Unit cost =$8400/200 = $42.00 It is important to know that, the number of labor hours used in jobs = Total labor cost/Rate per hour =2,400/6 = 400 hours 2. rehooreh14 says: This is a very big question so I won't be able to help u but I am sure someone will help u and may God bless uh 3. tiggyandrep2dbee says: Job 334 total cost:$  8,400

Unit cost: 8,400 / 200 = $42 Explanation: Total cost: Material + Labor + Overhead Material: 5,000 Labor: 2,400 Overhead: $\frac{Cost\: Of \:Manufacturing \:Overhead}{Cost \:Driver}= Overhead \:Rate$ We distribute the expected cost over the expected base: expected cost: 100,000 cost driver: 40,000 labor hours cost per hour: 100,000 / 40,000 = 2.5 predetermined overhead Now we multiply this rate by the hours of the job to know Applied Overhead: job labor hours x overhead rate: Job 334 had 2,400 labor cost /$6 rate per hour = 400 hours

400 x 2.5 = 1,000

Total cost: 5,000 + 2,400 + 1,000 = 8,400