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The King Corporation manufactures custom-made furniture. The following data pertains to Job X4A: Direct materials placed into production $9,000 Direct labor hours worked 300 hours Direct labor rate per hour $15 Machine hours worked 100 hours Plantwide overhead rate is $22.50 per machine hour. Job X4A consists of 500 units. One-half of Job X4A was sold for $10,000. What is the cost per unit for Job X4A?

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Answer:

The answer is: The total cost per unit is $31.50

Explanation:

First we have to calculate the total costs for Job X4A

  • Direct materials $9,000
  • Direct labor hours 300 x $15 per labor hours = $4,500
  • Machine hours 100 x $22.50 overhead rate per machine hour. = $2,250

Total costs for Job X4A = $9,000 + $4,500 + $2,250 = $15,750

Cost per unit = $15,750 / 500 units = $31.50

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