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 52,000 Total fixed manufacturing overhead cost$291,200 Variable manufacturing overhead per direct labor-hour$5.00 Recently, Job P951 was completed with the following characteristics: Number of units in the job 20 Total direct labor-hours 100 Direct materials$780 Direct labor cost$5,200 The unit product cost for Job P951 is closest to

Unitary cost= $352

Explanation:

First, we need to calculate the predetermined overhead rate:

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

Predetermined manufacturing overhead rate= (291,200 / 52,000) + 5

Predetermined manufacturing overhead rate= $10.6 per direct labor hour

Now, we can calculate the total cost of Job P951:

Total cost= 780 + 5,200 + 10.6*100

Total cost= $7,040

Finally, the unitary cost:

Unitary cost= 7,040 / 20

Unitary cost= $352

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