Ajax Company's manufacturing overhead cost per unit is 125% of the direct labor cost per unit. If Ajax Company's total direct labor cost for the 4,340 units manufactured totaled $56,420, what is the manufacturing overhead cost per unit?

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The manufacturing overhead cost per unit is 125% of the direct labor cost per unit. First, find the direct labor cost per unit by dividing the total direct labor cost by the number of units manufactured: $56,420 / 4,340 units = $13.00 per unit. Then, calculate the manufacturing overhead cost per unit as 125% of this amount: $13.00 * 1.25 = $16.25.

Ajax Company's Manufacturing Overhead Cost Per Unit Is 125% of the Direct