Question

If direct materials for one unit are $9.00, direct labor for one hour is $15.00, manufacturing overhead costs are $5.00 per direct labor hour, and one-fourth hour of direct labor is required to produce one unit of product,how much are the labor and overhead costs for one unit of product?

a. $5.00
b. $2.50
c. $20.00
d. $15.00

Answer 1

The labor and overhead costs for one unit of product are $3.75 and $1.25, respectively, resulting in a total cost of $5.00.

Step-by-step explanation:

To calculate the labor and overhead costs for one unit of product, we need to multiply the direct labor cost per hour by the number of labor hours required to produce one unit. In this case, the direct labor cost per hour is $15.00 and one-fourth of an hour of direct labor is required to produce one unit. Therefore, the labor cost for one unit is 15 x 1/4 = $3.75.

To calculate the overhead cost for one unit, we need to multiply the manufacturing overhead cost per direct labor hour by the number of labor hours required to produce one unit. The manufacturing overhead cost per direct labor hour is $5.00 and one-fourth of an hour of direct labor is required to produce one unit. Therefore, the overhead cost for one unit is 5 x 1/4 = $1.25.

Adding the labor cost and the overhead cost gives us the total cost for one unit of product: $3.75 (labor cost) + $1.25 (overhead cost) = $5.00.