Question

Job 243 was recently completed. The following data have been recorded on its job cost sheet:______.

Direct materials $ 56,870
Direct labor-hours 485 labor-hours
Direct labor wage rate $ 13 per labor-hour
Machine-hours 566 machine-hours
Number of units completed 4,300 units
The company applies manufacturing overhead on the basis of machine-hours. The predetermined overhead rate is $11 per machine-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

$16.14

Step-by-step explanation:

Computation for the unit product cost that would appear on the job cost sheet

First step is to find the Total cost

Direct Material Cost 56,870

Direct Labor 6,305

Manufacturing Overhead Cost 6,226

Total Cost $69,401

Second step is to find the unit product cost

Using this formula

Unit product cost= Total Cost ÷ Number of units

Unit product cost= $69,401÷ 4,300

Unit product cost= $16.14

1) Calculation for Direct Labor Cost

Wage rate = $13 per labor hour

Direct Labor hours = 485

Direct Labor Cost = 485 * $13

Direct Labor Cost = $6,305

2) Calculation for Manufacturing Overhead Cost

Overhead rate = $11 per machine hour

Total machine hours = 566

Manufacturing Overhead Cost = $566*11

Manufacturing Overhead Cost =$6,226

Therefore the unit product cost that would appear on the job cost sheet will be $16.14