Job 397 was recently completed. The following data have been recorded on its job cost sheet:...
Job 397 was recently completed. The following data have been recorded on its job cost sheet:
| Direct materials | $ | 43,000 | ||
| Direct labor-hours | 650 | DLHs | ||
| Direct labor wage rate | $ | 13 | per DLH | |
| Number of units completed | 3,500 | units | ||
The company applies manufacturing overhead on the basis of direct labor-hours. The predetermined overhead rate is $10 per direct labor-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.)
Homework Answers
Manufacturing overhead applied = Predetermined overhead rate x Direct labor hour
= 10 x 650
= $6,500
Job Cost Sheet
| Direct material | 43,000 |
| Direct labor (650 x 13) | 8,450 |
| Manufacturing overhead | 6,500 |
| Total cost | $57,950 |
Unit product cost = Total cost/Number of units
= 57,950/3,500
= $16.56
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