Question

g Job 397 was recently completed. The following data have been recorded on its job cost sheet: Direct materials $ 44,000 Direct labor-hours 630 DLHs Direct labor wage rate $ 12 per DLH Number of units completed 2,000 units The company applies manufacturing overhead on the basis of direct labor-hours. The predetermined overhead rate is $12 per direct labor-hour. Required: Compute the unit product cost that would appear on the job cost sheet for this job.

Answer 1

$29.56

Step-by-step explanation:

The computation of unit product cost is shown below:-

Unit product cost = (Direct material + Direct labor + Manufacturing overhead) ÷ Number of units completed

= ($44,000 + (63 × $12) + ($12 × 630)) ÷ 2,000

= ($44,000 + $7,560 + $7,560) ÷ 2,000

= $59,120 ÷ 2,000

= $29.56

Therefore for computing the unit product cost we simply applied the above formula.