Rachael Productions Co. uses an overhead rate of 40% of direct labor cost. The cost sheet for Job 227 shows that $2,000 in direct materials has been used and that $3,000 in direct labor has been incurred.
If 500 units of product have been produced on Job 227, what is the unit cost of the product?

Question

Rachael Productions Co. uses an overhead rate of 40% of direct labor cost. The cost sheet for Job 227 shows that $2,000 in direct materials has been used and that $3,000 in direct labor has been incurred. 
If 500 units of product have been produced on Job 227, what is the unit cost of the product?

Quizplus · Accepted Answer

The Answer of Rachael Productions Co. uses an overhead rate of 40% of direct labor cost. The cost sheet for Job 227 shows that $2,000 in direct materials has been used and that $3,000 in direct labor has been incurred. 
If 500 units of product have been produced on Job 227, what is the unit cost of the product?