Question

Job 434 was recently completed. The following data have been recorded on its job cost sheet:

Direct materials	$	45,000
Direct labor-hours		630	labor-hours
Direct labor wage rate	$	13	per labor-hour
Machine-hours		390	machine-hours
Number of units completed		3,000	units

The company applies manufacturing overhead on the basis of machine-hours. The predetermined overhead rate is $12 per machine-hour.

Required:

Compute the unit product cost that would appear on the job cost sheet for this job.

Answer 1

• All working forms part of the answer

A	Direct Materials	$            45,000.00
B = 630 x $ 13	Direct Labor Cost	$              8,190.00
C = 390 x $ 12	Manufacturing Overhead	$              4,680.00
D = A+B+C	Total Cost of the Job	$            57,870.00
E	No. of units	3,000
F = D/E	Unit Product Cost	$                    19.29 = Answer

• Answer: Unit product Cost = $ 19.29