Assume that a company pays a 5% sales commission Also, assume the job cost sheet for Job X shows that (1) it used 18 direct tabor-hours and incurred direct materials and direct labor charges of $500 and $360, and (2) its unit product cost is $27.35. If Job X contained 40 units, then what is the plantwide predetermined overhead rate per direct labor-hour? a. $15.00
b. $60.78
c. $13.00
d. $47.78

c. $13.00

Explanation:

The computation of the plantwide predetermined overhead rate is given below;

Given that

Direct labor hour used = 18

Direct material cost = $500

Direct labor cost = $360

Unit product cost = $27.35

So,  

Total cost of Job = Number of unit × Unit product cos

= 40 × 27.35

= $1,094

Now

Total cost of Job = Direct material cost + Direct labor cost + Overhead applied

1,094 = 500 + 360 + Overhead applied

Overhead applied = $234

Now

Overhead applied = Direct labor hour used × Plantwide predetermined overhead rate

234 = 18 × Plantwide predetermined overhead rate

Plantwide predetermined overhead rate = $13 per direct labor hour

answer; ///(d); determining who competes most closely   with whom evaluating whether industry driving forces and competitive pressure favor some strategic groups and hurt others, and ascertaining whether the profit potential of different strategic groups varies due to the strengths and weaknesses in each groups respective market positions;

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