Question

Jamie Hopen, CPA, prepares tax returns. The production costs and the number of tax returns prepared for the month of September are as follows: Direct materials $ 200 CPA staff salaries 4,000 Overhead 1,800 Total $6,000 Number of tax returns 300 What is the unit cost per tax return?

a. $20.00
b. $0.67
c. $15.00
d. $3.33

Answer 1

To find the unit cost per tax return, sum the total costs (direct materials, CPA staff salaries, and overhead) which is $6,000 and divide by the number of tax returns, 300. The unit cost per tax return is $20.00.

Step-by-step explanation:

To determine the unit cost per tax return prepared by Jamie Hopen, CPA, you need to calculate the total costs and divide by the number of tax returns. The total costs include the direct materials, CPA staff salaries, and overhead, which sum up to $6,000 for 300 tax returns. Therefore, the unit cost per tax return is calculated as follows:

Total Costs = Direct Materials + CPA Staff Salaries + Overhead

Total Costs = $200 + $4,000 + $1,800

Total Costs = $6,000

Number of Tax Returns = 300

Unit Cost Per Tax Return = Total Costs / Number of Tax Returns

Unit Cost Per Tax Return = $6,000 / 300

Unit Cost Per Tax Return = $20.00

Hence, the correct answer is a. $20.00.