Question

upo Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours. The company based its predetermined overhead rate for the current year on the following data: Total machine-hours32,800 Total fixed manufacturing overhead cost$164,000 Variable manufacturing overhead per machine-hour$ 5 Recently, Job T687 was completed with the following characteristics: Number of units in the job10 Total machine-hours30 Direct materials$ 745 Direct labor cost$1,490 The unit product cost for Job T687 is closest to: (Round your intermediate calculations to 2 decimal places.)

Answer 1

Answer: $253.50 per unit

Step-by-step explanation:

Total Overhead = Fixed manufacturing Overhead + Variable Manufacturing Overhead

= 164,000 + ($5 * 32,800)

= $328,000

Manufacturing overhead rate per hour = Total Overhead/ Machine hours

= 328,000/32,800

= $10 per hour

Job T687 used 30 machine hours so its manufacturing overhead is;

= 10 * 30

= $300

Job T687 cost = Direct materials + Direct labor cost + Manufacturing overhead

= 745 + 1,490 + 300

= $‭2,535‬

There were 10 units in the Job so unit product cost is;

= ‭2,535‬/10

= $253.50 per unit