The Nautical Corporation manufactures custom-made wood wall units. The following data pertains to Job X4A: $\begin{array}{lr}
\text { Direct materials placed into production } & \$ 9,000 \
\text { Direct labor hours worked } & 300 \text { hours } \
\text { Direct labor rate per hour } & \$ 15 \
\text { Machine hours worked } & 100 \text { hours }
\end{array}$
Factory 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?

Question

Quizplus · Accepted Answer

The cost per unit for Job X4A can be calculated by adding the direct materials, direct labor, and factory overhead costs, and then dividing by the total units produced. Direct materials cost is given as $9,000. Direct labor cost is calculated as 300 hours * $15/hour = $4,500. Factory overhead is calculated as 100 machine hours * $22.50/machine hour = $2,250. The total cost is $9,000 + $4,500 + $2,250 = $15,750. Dividing this by the total units (500) gives a cost per unit of $31.50.

The Nautical Corporation Manufactures Custom-Made Wood Wall Units Factory Overhead Rate Is $22