Question

ob 412 was one of the many jobs started and completed during the year. The job required $9,700 in direct materials and 45 hours of direct labor time at a total direct labor cost of $10,600. If the job contained four units and the company billed at 65% above the unit product cost on the job cost sheet, what price per unit would have been charged to the customer

Answer 1

the price per unit that should be charged to the customer is $8,373.75

Step-by-step explanation:

The computation of the price per unit that should be charged to the customer is shown below

Unit product cost = ($9,700 + $10,600) ÷ 4 units

= $5,075 per unit

Now the price per unit is

= Unit product cost × given percentage

= $5,075 × 165%

= $8,373.75

hence, the price per unit that should be charged to the customer is $8,373.75