On March 1, Job 492 had a beginning balance of $500. During March, direct materials of $700 and direct labour of $400 were added to the job. Overhead is applied to production at a rate of 60% of direct labour. There are ten units in Job 492. What is the unit cost?

Question

Quizplus · Accepted Answer

1. Calculate the total cost of Job 492: 
Direct materials + Direct labour + Overhead = 
$700 + $400 + ($400 x 60%) = 
$700 + $400 + $240 = 
$1,340

2. Calculate the unit cost: 
Total cost / Number of units = 
$1,340 / 10 units = 
$134 per unit

Therefore, the unit cost of Job 492 is $134. Option B is the correct answer.

On March 1, Job 492 Had a Beginning Balance of $500