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Managerial accounting MCQ

 
 
Reply 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:
Factory overhead costs: $180,000
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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Reply 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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