Question

Job 397 was recently completed. The following data have been recorded on its job cost sheet: Direct materials $ 46,000 Direct labor-hours 630 DLHs Direct labor wage rate $ 12 per DLH Number of units completed 4,000 units The company applies manufacturing overhead on the basis of direct labor-hours. The predetermined overhead rate is $11 per direct labor-hour. Required: Compute the unit product cost that would appear on the job cost sheet for this job. (Round your answer to 2 decimal places.)

Answer 1

Answer:

Cost per unit for Job 397 = $15.12

Explanation:

Provided overhead predetermined rate = $11 based on Direct Labor Hours,

Therefore overheads will be charged on such predetermined rate.

Cost of direct material = $46,000

Cost of Direct Labor = $12 X 630 = $7,560

Cost of Overhead = $11 X 630 = $6,930

Total cost of units produced = $60,490

Total number of units produced of the Job 397 = 4,000 units

Cost per unit for Job 397 = $60,490/4,000 = $15.12