Jordan Manufacturing uses a predetermined overhead allocation rate based on a percentage of direct labor cost.At the beginning of the year,it estimated the manufacturing overhead rate to be 30% times the direct labor cost.In the month of June,Jordan completed Job 13C,and its details are as follows: $$\begin{array} { | l | r | }
\hline \text { Direct materials cost } & \$ 6,020 \
\hline \text { Direct labor cost } & \$ 25,000 \
\hline \text { Direct labor hours } & 30 \text { hours } \
\hline \text { Units of product produced } & 250 \
\hline
\end{array}$$ What is the cost per unit of finished product of Job 13C? (Round your answer to the nearest cent.)

Question

Jordan Manufacturing uses a predetermined overhead allocation rate based on a percentage of direct labor cost.At the beginning of the year,it estimated the manufacturing overhead rate to be 30% times the direct labor cost.In the month of June,Jordan completed Job 13C,and its details are as follows: $$\begin{array} { | l | r | } 
\hline \text { Direct materials cost } & \$ 6,020 \
\hline \text { Direct labor cost } & \$ 25,000 \
\hline \text { Direct labor hours } & 30 \text { hours } \
\hline \text { Units of product produced } & 250 \
\hline
\end{array}$$ What is the cost per unit of finished product of Job 13C? (Round your answer to the nearest cent.)

Quizplus · Accepted Answer

The total cost of Job 13C includes direct materials, direct labor, and allocated overhead. The allocated overhead is 30% of the direct labor cost, which is $25,000 * 30% = $7,500. Thus, the total cost is $6,020 (direct materials) + $25,000 (direct labor) + $7,500 (overhead) = $38,520. Dividing this by the units produced (250 units) gives a cost per unit of $38,520 / 250 = $154.08.

Jordan Manufacturing Uses a Predetermined Overhead Allocation Rate Based on a Percentage