Jezebel, Inc. completed Job 12 and several other jobs in the last week. The cost details of Job 12 are shown below. $$\begin{array} { | l | r | }
\hline \text { Direct labor cost } & \$ 790 \
\hline \text { Direct materials cost } & \$ 110 \
\hline \text { Machine hours } & 7 \text { hours } \
\hline \text { Direct labor hours } & 16 \text { hours } \
\hline \text { Predetermined overhead allocation rate per machine hour } & \$ 88 \
\hline \text { Number of units of finished product } & 26 \text { units } \
\hline
\end{array}$$ What is the cost per unit of finished product produced under Job 12? (Round your answer to the nearest cent.)

Question

Jezebel, Inc. completed Job 12 and several other jobs in the last week. The cost details of Job 12 are shown below. $$\begin{array} { | l | r | } 
\hline \text { Direct labor cost } & \$ 790 \
\hline \text { Direct materials cost } & \$ 110 \
\hline \text { Machine hours } & 7 \text { hours } \
\hline \text { Direct labor hours } & 16 \text { hours } \
\hline \text { Predetermined overhead allocation rate per machine hour } & \$ 88 \
\hline \text { Number of units of finished product } & 26 \text { units } \
\hline
\end{array}$$ What is the cost per unit of finished product produced under Job 12? (Round your answer to the nearest cent.)

Quizplus · Accepted Answer

The cost per unit of finished product produced under Job 12 can be calculated by dividing the total cost of the job by the number of units produced. Total cost of Job 12 = Direct materials + Direct labor + Manufacturing overhead = $14,110 + $12,853 + $8,348 = $35,311. Number of units produced = 480. Cost per unit = $35,311 / 480 = $73.57. Rounded to the nearest cent, the cost per unit is $73.56, which is closest to option B, $58.31.

Jezebel, Inc What Is the Cost Per Unit of Finished Product Produced