Question

Job 397 was recently completed. The following data have been recorded on its job cost sheet. Direct materials $59,400 Direct labor-hours 1,254 DLHs Direct labor wage rate $11 per DLH Number of units completed 3,300 units The company applies manufacturing overhead on the basis of direct labor-hours. The predetermined overhead rate is $37 per direct labor-hour. Required: What's the unit product cost that would appear on the job cost sheet for this job

Answer 1

Answer:

$36.24

Explanation:

The computation of unit product cost is shown below:-

Unit product cost = Direct material + Direct labor + Manufacturing overhead) ÷ Unit completed

= ($59,400 + (1254 × $11) + (1254 × $37)) ÷ 3,300

= ($59,400 + $13,794 + $46,398) ÷ 3,300

= $119,592 ÷ 3,300

= $36.24

Therefore for computing the units product cost we simply applied the above formula.