The King Corporation manufactures custom-made furniture. The following data pertains to Job X4A:
$$\begin{array} { l l }
\text { Direct materals placed into production } & \$ 9,000 \
\text { Direct labour hours warked } & 300 \text { hours } \
\text { Direct labou rate per hour } & \$ 15 \
\text { Machine hours worked } & 100 \text { hours }
\end{array}$$
Factory overhead rate is $22.50 per machine hour.Job X4A consists of 500 units.
-Refer to the figure.One-half of Job X4A was sold for $10,000.What is the cost per unit for Job X4A?

Question

The King Corporation manufactures custom-made furniture. The following data pertains to Job X4A:
$$\begin{array} { l l } 
\text { Direct materals placed into production } & \$ 9,000 \
\text { Direct labour hours warked } & 300 \text { hours } \
\text { Direct labou rate per hour } & \$ 15 \
\text { Machine hours worked } & 100 \text { hours }
\end{array}$$ 
Factory overhead rate is $22.50 per machine hour.Job X4A consists of 500 units.
-Refer to the figure.One-half of Job X4A was sold for $10,000.What is the cost per unit for Job X4A?

Quizplus · Accepted Answer

The total cost for Job X4A is calculated as follows:- Direct materials: $9,000- Direct labor: 300 hours * $15/hour = $4,500- Factory overhead: 100 machine hours * $22.50/machine hour = $2,250Total cost = $9,000 + $4,500 + $2,250 = $15,750Cost per unit = Total cost / Number of units = $15,750 / 500 units = $31.50 per unit.

The King Corporation Manufactures Custom-Made Furniture Factory Overhead Rate Is $22