Peter Manufacturing, Inc. employs an overhead rate of 150% of direct labor cost. The Job 180 cost sheet shows that $10,000 in direct materials has been used and that $11,000 in direct labor has been incurred.
If 2,000 units of product have been produced on Job 180, what is the unit cost of the product?

Question

Peter Manufacturing, Inc. employs an overhead rate of 150% of direct labor cost. The Job 180 cost sheet shows that $10,000 in direct materials has been used and that $11,000 in direct labor has been incurred. 
If 2,000 units of product have been produced on Job 180, what is the unit cost of the product?

Quizplus · Accepted Answer

The Answer of Peter Manufacturing, Inc. employs an overhead rate of 150% of direct labor cost. The Job 180 cost sheet shows that $10,000 in direct materials has been used and that $11,000 in direct labor has been incurred. 
If 2,000 units of product have been produced on Job 180, what is the unit cost of the product?