Question

Job 652 was recently completed. The following data have been recorded on its job cost sheet: Direct materials $ 63,900 Direct labor-hours 1,233 DLHs Direct labor wage rate $ 15 per DLH Number of units completed 4,500 units The company applies manufacturing overhead on the basis of direct labor-hours. The predetermined overhead rate is $35 per direct labor-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

The unit product cost for the job is calculated by summing the direct materials, direct labor, and manufacturing overhead costs, and then dividing by the number of units produced. The total comes to $27.90 per unit.

Step-by-step explanation:

To compute the unit product cost that would appear on the job cost sheet for this job, we need to calculate the direct materials, direct labor, and manufacturing overhead costs and then combine these to find the total cost before dividing by the number of units produced.

The cost of direct materials is given as $63,900.

To calculate the cost of direct labor, we multiply the direct labor-hours by the direct labor wage rate:

• 1,233 DLHs × $15 per DLH = $18,495

The manufacturing overhead is applied based on a predetermined overhead rate multiplied by the actual direct labor-hours:

• 1,233 DLHs × $35 per DLH = $43,155

Now, we sum direct materials, direct labor, and manufacturing overhead to get the total job cost:

• $63,900 (Direct Materials) + $18,495 (Direct Labor) + $43,155 (Manufacturing Overhead) = $125,550 (Total Job Cost)

To find the unit cost, divide the total job cost by the number of units produced:

• 
  $125,550 / 4,500 units = $27.90 per unit (rounded to 2 decimal places)