Calico Corporation produced 1 comma 900 units in Job 903. The following data is provided for Job 903 for the year: Direct materials used $ 3 comma 100 Direct labor costs $ 819 Actual manufacturing overhead rate per direct labor hour $17.15 Predetermined manufacturing overhead rate per direct labor hour $ 18.00 Direct labor hours used in Job 903 39 Direct labor rate per hour $ 21 What is the unit cost for Job 903? (Round to two decimal places.)

Question

Business

Dominick Pena

11 March, 08:24

Calico Corporation produced 1 comma 900 units in Job 903. The following data is provided for Job 903 for the year: Direct materials used $ 3 comma 100 Direct labor costs $ 819 Actual manufacturing overhead rate per direct labor hour $17.15 Predetermined manufacturing overhead rate per direct labor hour $ 18.00 Direct labor hours used in Job 903 39 Direct labor rate per hour $ 21 What is the unit cost for Job 903? (Round to two decimal places.)

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Answers (1)

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Amelia Schneider · Answer 1

Unitary cost = $2.23

Explanation:

Giving the following information:

Units = 1,900

Direct materials used $3,100

Direct labor costs $819

Predetermined manufacturing overhead rate per direct labor hour $8.00

Direct labor hours used in Job 903 = 39

We will consider the predetermined overhead rate.

First, we need to calculate the total cost:

Total cost = 3,100 + 819 + 8*39 = $4,231

Now, the unitary cost:

Unitary cost = 4,231/1,900 = $2.23