Question

Wilson Products uses a plantwide predetermined overhead rate of $10 per direct labor-hour. Direct material and direct labor associated with Job X23 are $4,000 and $1,200, respectively. If Job X23 used 100 direct labor-hours to produce 50 audio controllers, what is this job’s unit product cost (per audio controller)?

Answer 1

Answer:

the job unit product cost is $124

Explanation:

The computation of the job unit product cost is as follows:

= Total cost assigned ÷ number of audio controllers produced

= ($4,000 + $1,200 + $10 × 100) ÷ (50)

= ($4,000 + $1,200 + $1,000) ÷ (50)

= $6,200 ÷ 50

= $124

hence the job unit product cost is $124