Snappy Company Has a Job-Order Cost System and Uses a Predetermined

Multiple Choice

Snappy Company has a job-order cost system and uses a predetermined overhead rate based on direct Labour-hours to apply manufacturing overhead to jobs. Manufacturing overhead cost and direct Labour-hours were estimated at £100,000 and 40,000 hours, respectively, for the year. In July, Job #334 was completed at a cost of £5,000 in direct materials and £2,400 in direct Labour. The Labour rate is £6 per hour. By the end of the year, Snappy had worked a total of 45,000 direct Labour-hours and had incurred £110,250 actual manufacturing overhead cost.
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If Job #334 contained 200 units, the unit cost on the completed job cost sheet would be:

A) £37.00.
B) £42.00.
C) £41.90.
D) £39.50.