The Solidwood Corporation manufactures custom-made furniture. The following data pertains to Job X4A:
Factory overhead rate is $22.50 per machine hour.
$\begin{array}{ll}
\text { Direct materials placed into production } & \$ 9,000 \
\text { Direct labour hours worked } & 300 \text { hours } \
\text { Direct labour rate per hour } & \$ 15 \
\text { Machine hours worked } & 100 \text { hours }
\end{array}$
-Refer to the Figure.Suppose Job X4A consists of 500 units and one-half of Job X4A was sold for $10,000.What would be the cost per unit for Job X4A?

Question

The Solidwood Corporation manufactures custom-made furniture. The following data pertains to Job X4A:
Factory overhead rate is $22.50 per machine hour.
 $\begin{array}{ll}
\text { Direct materials placed into production } & \$ 9,000 \
\text { Direct labour hours worked } & 300 \text { hours } \
\text { Direct labour rate per hour } & \$ 15 \
\text { Machine hours worked } & 100 \text { hours }
\end{array}$
-Refer to the Figure.Suppose Job X4A consists of 500 units and one-half of Job X4A was sold for $10,000.What would be the cost per unit for Job X4A?

Quizplus · Accepted Answer

The total cost for Job X4A is calculated as follows:- Direct materials: $9,000- Direct labor: 300 hours * $15/hour = $4,500- Factory overhead: 100 machine hours * $22.50/machine hour = $2,250Total cost = $9,000 (materials) + $4,500 (labor) + $2,250 (overhead) = $15,750Cost per unit = Total cost / Number of units = $15,750 / 500 units = $31.50 per unit.

The Solidwood Corporation Manufactures Custom-Made Furniture -Refer to the Figure