Job 243 was recently completed. The following data have been recorded on its job cost sheet: Direct materials $ 55,870 Direct labor-hours 475 labor-hours Direct labor wage rate $ 11 per labor-hour Machine-hours 556 machine-hours Number of units completed 4,100 units The company applies manufacturing overhead on the basis of machine-hours. The predetermined overhead rate is $13 per machine-hour. Required: Compute the unit product cost that would appear on the job cost sheet for this job

 $16.66

Explanation:

Data provided

Direct material = $55,870

Direct labor hour = 475

Wage rate = $11

Machine hour = $556

Number of units = 4,100

Overhead rate = $13

The preparation of job sheet is shown below:-

Direct Material                $55,870

Add: Direct Labor           $5,225

( 475 × $11)

Overhead                         $7,228

($556 × $13)

Total                                  $68,323                      

Number of units                4,100

Cost per unit                      $16.66

($68,323 ÷ 4,100)

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