Haddows,Inc.completed Job GH6 last month.The cost details of GH6 are shown below. $$\begin{array} { | l | r | }
\hline \text { Direct labor cost } & \$ 2,100 \
\hline \text { Direct materials cost } & \$ 86 \
\hline \text { Direct labor hours } & 5 \text { hours } \
\hline \text { Predetermined overhead allocation rate per direct labor } & \$ 71 \
\text { hour } & \
\hline \text { Number of units of finished product } & 32\
\hline
\end{array}$$
Calculate the cost per unit of the finished product of Job GH6.(Round your answer to the nearest cent.)

Question

Haddows,Inc.completed Job GH6 last month.The cost details of GH6 are shown below. $$\begin{array} { | l | r | } 
\hline \text { Direct labor cost } & \$ 2,100 \
\hline \text { Direct materials cost } & \$ 86 \
\hline \text { Direct labor hours } & 5 \text { hours } \
\hline \text { Predetermined overhead allocation rate per direct labor } & \$ 71 \
\text { hour } &  \
\hline \text { Number of units of finished product } & 32\
\hline
\end{array}$$
 Calculate the cost per unit of the finished product of Job GH6.(Round your answer to the nearest cent.)

Quizplus · Accepted Answer

The total cost of Job GH6 includes direct labor, direct materials, and allocated overhead. The allocated overhead is calculated as the predetermined overhead rate per direct labor hour ($71) multiplied by the total direct labor hours (5 hours), which equals $355. Adding this to the direct labor cost ($2,100) and direct materials cost ($86) gives a total job cost of $2,541. Dividing this by the number of units (32) gives a cost per unit of $79.41.

Haddows,Inc Calculate the Cost Per Unit of the Finished Product of Shown