Hermione Company completed Job GH6 last month.The cost details of GH6 are shown below:
$$\begin{array} { | l | l | }
\hline \text { Direct labour cost } & \$ 2080 \
\hline \text { Direct materials cost } & \$ 180 \
\hline \text { Direct labour hours } & 75 \
\hline \text { Predetermined overhead allocation rate per direct labour hour } & \$ 54 \
\hline \text { Number of units of finished product } & 280 \
\hline
\end{array}$$
Calculate the cost per unit of finished product of Job GH6.

Question

Hermione Company completed Job GH6 last month.The cost details of GH6 are shown below:
$$\begin{array} { | l | l | } 
\hline \text { Direct labour cost } & \$ 2080 \
\hline \text { Direct materials cost } & \$ 180 \
\hline \text { Direct labour hours } & 75 \
\hline \text { Predetermined overhead allocation rate per direct labour hour } & \$ 54 \
\hline \text { Number of units of finished product } & 280 \
\hline
\end{array}$$
Calculate the cost per unit of finished product of Job GH6.

Quizplus · Accepted Answer

The cost per unit of finished product is calculated by dividing the total cost of the job by the number of units of finished product. The total cost of the job is the sum of the direct labour cost, direct materials cost, and overhead cost. The overhead cost is calculated by multiplying the predetermined overhead allocation rate per direct labour hour by the number of direct labour hours.Therefore, the cost per unit of finished product of Job GH6 is:(Direct labour cost + Direct materials cost + Overhead cost) / Number of units of finished product= ($2080 + $180 + ($54 x 75)) / 280= $22.54

Hermione Company Completed Job GH6 Last Month Calculate the Cost Per Unit of Finished Product of Job