Thursday, 10 April 2014

Job 827 was recently completed. The following data have been recorded on its job cost sheet:



Problem 2-133 [LO2, LO4]
Job 827 was recently completed. The following data have been recorded on its job cost sheet:
 




  Direct materials
$
56,200  

  Direct labor-hours

1,337  
labor-hours
  Direct labor wage rate
$
14.2  
per labor-hour
  Machine-hours

1,476  
machine-hours
  Number of units completed

3,850  
units

The company applies manufacturing overhead on the basis of machine-hours. The predetermined overhead rate is $13.2 per machine-hour.
 
Required:
Compute the unit product cost that would appear on the job cost sheet for this job. (Do not round intermediate calculations and round your final answer to 2 decimal places. Omit the "$" sign in your response.)
 
  Unit product cost
$  
 

Explanation:



  Direct materials
$
56,200.00  
  Direct labor $14.2 per DLH × 1,337 DLHs

18,985.40  
  Manufacturing overhead $13.2 per MH × 1,476 MHs

19,483.20  



  Total cost
$
94,668.60  





  Unit product cost
$
24.59