Venus Manufacturing uses a predetermined overhead allocation rate based on percentage of direct labor cost.At the beginning of the year,it fixed the manufacturing overhead rate at 20% times the direct labor cost.In the month of June,Venus completed Job 13C and its details are as follows:
-What is the cost per unit of finished product of Job 13C?

Question

Venus Manufacturing uses a predetermined overhead allocation rate based on percentage of direct labor cost.At the beginning of the year,it fixed the manufacturing overhead rate at 20% times the direct labor cost.In the month of June,Venus completed Job 13C and its details are as follows:  
-What is the cost per unit of finished product of Job 13C?

Quizplus · Accepted Answer

Job 13C has 1,000 units in ending work in process and 2,000 units completed and transferred out. The total cost of Job 13C is $73,400. The cost per unit of finished product is $73,400 / 2,000 units = $36.70.

Venus Manufacturing Uses a Predetermined Overhead Allocation Rate Based on Percentage