Jamie Hopen, CPA, prepares tax returns. The production costs and the number of tax returns prepared for the month of September are as follows: $$\begin{array} { l r }
\text { Direct materials } & \$ 200 \
\text { CPA staff salaries } & 4,000 \
\text { Overhead } & 1,800 \
\text { Total } & \$ 6,000
\end{array}$$ Number of tax returns 300
What is the unit cost per tax return?

Question

Jamie Hopen, CPA, prepares tax returns. The production costs and the number of tax returns prepared for the month of September are as follows: $$\begin{array} { l r } 
\text { Direct materials } & \$ 200 \
\text { CPA staff salaries } & 4,000 \
\text { Overhead } & 1,800 \
\text { Total } & \$ 6,000
\end{array}$$ Number of tax returns 300
What is the unit cost per tax return?

Quizplus · Accepted Answer

The unit cost per tax return is calculated by dividing the total production costs by the number of tax returns. So, $6,000 / 300 = $20.00 per tax return.

Jamie Hopen, CPA, Prepares Tax Returns Number of Tax Returns 300 What Is the Unit Cost

Jamie Hopen, CPA, Prepares Tax Returns Number of Tax Returns 300
What Is the Unit Cost