Job 412 was one of the many jobs started and completed during the year. the job required $10,000 in direct materials and 36 hours of direct labor time at a total direct labor cost of $10,900. if the job contained five units and the company billed at 75% above the unit product cost on the job cost sheet, what price per unit would have been charged to the customer?

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8 April, 04:00

Job 412 was one of the many jobs started and completed during the year. the job required $10,000 in direct materials and 36 hours of direct labor time at a total direct labor cost of $10,900. if the job contained five units and the company billed at 75% above the unit product cost on the job cost sheet, what price per unit would have been charged to the customer?

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Lorelei Higgins · Answer 1

Here the direct materials = $10,000 and Total direct labor cost = $10,900 Total direct Cost = $10,000+$10,900 = $20,900 Now, Job contained 5 units so Total Cost / unit = $20,900/5 = $4180 per unit Company billed at 75% above unit product cost so, The price per unit will be $ 4180 + ($ 4180 x 0.75) ] = ($ 4180 + $ 3135) = $ 7315 per unit Ans : $ 7315 per unit