When job 117 was completed, direct materials totaled $4,400; direct labor, $5,600; and factory overhead, $2,400. a total of 1,000 units were produced at a per-unit cost of

a. $124

b. $12.40

c. $12,400

d. $1,240?

To solve: add up all in the labor costs and then divide by the number of units produced to get the per unit cost of the labor.

Direct materials = $4,400

Direct labor = $5,600

Factory overhead = $2,400

Units produced = 1,000

Per unit cost = ($4,400 + $5,600 + $2,400) / 1,000

Per unit cost = $12,400/1,000

Per unit cost = $12.40