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# Managerial accounting MCQ

Sun 27 Sep, 2015 03:13 am
Hi all~ i need help on this MCQ qns~ which is the correct ans?

In 2015, ABC Plumbing Supplies planned the following:
Direct labour costs (15,000 hours at \$8.00 per hour): \$120,000
Machine hours: 48,000
Direct material costs: \$108,000

The predetermined overhead rate is based on direct labour hours and planned production during 2015 is 12,000 units. The estimated cost per unit produced is:

A) \$34.00.
B) \$24.00.
C) \$26.00.
D) \$44.00.
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murderarhyme

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Sun 27 Sep, 2015 10:36 am
@wanxin2610,
Direct Materials -- \$108,000/12,000 units = \$9/unit
Direct Labour -- \$120,000/12,000 units = \$10/unit
Estimated OH -- \$180,000/12,000 units = \$15/unit

Estimated cost per unit produced : \$9 + \$10 + \$15 = \$34

I'm doing the same quiz and I think this is the answer. Good luck for acc203.
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