Answer:
Unit cost= $347.8
Explanation:
Giving the following information:
The total fixed manufacturing overhead cost of $468,000, variable manufacturing overhead of $2.10 per machine-hour, and 72,000 machine-hours.
Job A496:
Number of units in the job 10
Total machine-hours 80
Direct materials $ 930
Direct labor cost $ 1,860
First, we need to calculate the manufacturing overhead rate:
Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Estimated manufacturing overhead rate= (468,000/72,000) + 2.1= $8.6 per machine hour
Now, we can calculate the total cost:
Total cost= direct material + direct labor + manufacturing overhead
Total cost= 930 + 1,860 + (8.6*80)= $3,478
Unit cost= total cost/ number of units= 3,478/10= $347.8
