Cost Management
Beans 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 total fixed manufacturing overhead cost of $162,000, variable manufacturing overhead of $2.80 per direct labor-hour, and 60,000 direct labor-hours. Recently, Job K818 was completed with the following characteristics:
| Number of units in the job | 10 |
| Total direct labor-hours | 50 |
| Direct materials | $ 920 |
| Direct labor cost | $ 1,400 |
The unit product cost for Job K818 is closest to:
| $259.50 | ||
| $232.00 | ||
| $119.50 | ||
| $51.90 |
