question archive The King Corporation manufactures custom-made furniture
The King Corporation manufactures custom-made furniture
Subject:AccountingPrice:2.87 Bought7
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?
a. $18
b. $31.50
c. $27
d. $40.50
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Answer:
Per unit cost for job X4A = Total cost/total units
= 15,750/500
= $31.50
Total units = 500 units
Total cost = 9,000 + (300 x 15) + (100 x 22.50)
= 9,000 + 4,500 + 2,250 = 15,750
