Jezebel,Inc.completed Job 12 and several other jobs in the last week.The cost details of Job 12 are shown below. $$\begin{array} { | l | l | }
\hline \text { Direct labor cost } & \$ 820 \
\hline \text { Direct materials cost } & \$ 120 \
\hline \text { Machine hours } & 6 \text { hours } \
\hline \text { Direct labor hours } & 17 \text { hours } \
\hline \text { Predetermined overhead allocation rate per machine hour } & \$ 85 \
\hline \text { Number of units of finished product } & 22 \text { units } \
\hline
\end{array}$$ What is the cost per unit of finished product produced under Job 12? (Round your answer to the nearest cent.)

Question

Jezebel,Inc.completed Job 12 and several other jobs in the last week.The cost details of Job 12 are shown below. $$\begin{array} { | l | l | } 
\hline \text { Direct labor cost } & \$ 820 \
\hline \text { Direct materials cost } & \$ 120 \
\hline \text { Machine hours } & 6 \text { hours } \
\hline \text { Direct labor hours } & 17 \text { hours } \
\hline \text { Predetermined overhead allocation rate per machine hour } & \$ 85 \
\hline \text { Number of units of finished product } & 22 \text { units } \
\hline
\end{array}$$ What is the cost per unit of finished product produced under Job 12? (Round your answer to the nearest cent.)

Quizplus · Accepted Answer

To find the cost per unit of the finished product, first calculate the total cost of Job 12 by adding direct labor cost, direct materials cost, and allocated overhead. The allocated overhead is calculated by multiplying the machine hours (6 hours) by the predetermined overhead allocation rate per machine hour ($85), which equals $510. The total cost is $820 (direct labor) + $120 (direct materials) + $510 (allocated overhead) = $1450. Then, divide the total cost by the number of units of finished product (22 units) to get the cost per unit: $1450 / 22 = $65.91.

Jezebel,Inc What Is the Cost Per Unit of Finished Product Produced