Figure 5 - 2 The Cameron Corporation manufactures custom-made purses. The following data pertains to Job XY5:
Factory overhead is applied using a plant-wide rate based on direct labor hours. Factory overhead was budgeted at $80,000 for the year and the direct labor hours were estimated to be 20,000. Job XY5 consists of 50 units.
Refer to Figure 5-2. What is the materials cost per unit for Job XY5?

Question

Figure 5 - 2 The Cameron Corporation manufactures custom-made purses. The following data pertains to Job XY5:
 Factory overhead is applied using a plant-wide rate based on direct labor hours. Factory overhead was budgeted at $80,000 for the year and the direct labor hours were estimated to be 20,000. Job XY5 consists of 50 units.
Refer to Figure 5-2. What is the materials cost per unit for Job XY5?

Quizplus · Accepted Answer

The materials cost per unit can be calculated by dividing the total material cost by the number of units produced. The total material cost for Job XY5 is $4,000 (50 units x $80 per unit). Therefore, the materials cost per unit for Job XY5 is $80.

Figure 5 - 2 the Cameron Corporation Manufactures Custom-Made Purses