Question

The King Corporation manufactures custom-made furniture. The following data pertains to Job X4A:Direct materials placed into production $9,000Direct labor hours worked 300 hoursDirect labor rate per hour $ 15Machine hours worked 100 hoursPlantwide overhead rate is $22.50 per machine hour.Job X4A consists of 500 units. One-half of Job X4A was sold for $10,000. What is the cost per unit for Job X4A?

Answer 1

Unitary cost of JobX4A= $31.5

Step-by-step explanation:

Giving the following information:

The following data pertains to Job X4A:

Direct materials placed into production $9,000

Direct labor hours worked 300 hours

Direct labor rate per hour $ 15

Machine hours worked 100 hours

The plantwide overhead rate is $22.50 per machine hour.

Job X4A consists of 500 units.

One-half of Job X4A was sold for $10,000.

Total cost of JobX4A= direct materials + direct labor + manufacturing overhead

Total cost of JobX4A= 9000 + (300*15) + (100*22.5)= $15,750

Unitary cost of JobX4A= 15750/500= $31.5