Dehner Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on direct labor-hours. The company based its predetermined overhead rate for the current year on the following data: Total direct labor-hours 99,000 Total fixed manufacturing overhead cost $ 544,500 Variable manufacturing overhead per direct labor-hour $ 2.00 Recently, Job P951 was completed with the following characteristics: Number of units in the job 20 Total direct labor-hours 100 Direct materials $ 880 Direct labor cost $ 9,900 The unit product cost for Job P951 is closest to:

The company based its predetermined overhead rate for the current year on the following data: Total direct labor-hours 99,000 Total fixed manufacturing overhead cost $ 544,500 Variable manufacturing overhead per direct labor-hour $ 2.00

Job P951:

Number of units in the job 20

Total direct labor-hours 100

Direct materials $ 880

Direct labor cost $ 9,900

First, we need to determine the allocated overhead:

Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Estimated manufacturing overhead rate= (544500/99000)+ 2= $7.5

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Allocated MOH= 7.5* 100= $750

Total cost= 880 + 9900 + 750= $11,530

Unitary cost= 11530/20= $576.5