Question

When job 117 was completed, direct materials totaled $4,400; direct labor, $5,600; and factory overhead, $2,400. a total of 1,000 units were produced at a per-unit cost of
a. $124
b. $12.40
c. $12,400
d. $1,240?

Answer 1

To solve: add up all in the labor costs and then divide by the number of units produced to get the per unit cost of the labor.

Direct materials = $4,400
Direct labor = $5,600
Factory overhead = $2,400
Units produced = 1,000

Per unit cost = ($4,400 + $5,600 + $2,400)/1,000
Per unit cost = $12,400/1,000
Per unit cost = $12.40