Question

Job 243 was recently completed. The following data have been recorded on its job cost sheet: Direct materials$54,370 Direct labor-hours 460labor-hours Direct labor wage rate$10per labor-hour Machine-hours 541machine-hours Number of units completed 3,800units The company applies manufacturing overhead on the basis of machine-hours. The predetermined overhead rate is $14 per machine-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:

$17.51

Explanation:

Given that,

Direct materials = $54,370

Direct labor-hours = 460 labor-hours

Direct labor wage rate = $10 per labor-hour

Machine-hours = 541 machine hours

Predetermined overhead rate = $14 per machine-hour

Number of units completed = 3,800 units

Total cost :

= Direct Materials + Direct Labor + Manufacturing Overhead

= $54,370 + (460 × $10) +  (541 × $14)

= $54,370 + $4,600 + $7,574

= $66,544

Unit product cost:

= Total cost  ÷ Number of units completed

= $66,544 ÷ 3,800

= $17.51