Question

The Cameron Corporation manufactures custom-made purses. The following data pertains to Job XY5: Direct materials placed into production $4,000 Direct labor hours worked 50 hours Direct labor rate per hour $15 Machine hours worked 100 hours Factory overhead is applied using a plant-wide rate based on direct labor hours. Factory overhead was budgeted at $80,000 for the year and the direct labor hours were estimated to be 20,000. Job XY5 consists of 50 units. What is the materials cost per unit for Job XY5?

Answer 1

Answer:

$80  

Explanation:

The computation of the material cost per unit is shown below:

= Direct materials placed into production ÷ number of units

= $4,000 ÷ 50 units

= $80  

Simply we divide the direct material placed with the number of units so that the correct material cost per unit can come,  

All other information which is given is not relevant. Hence, ignored it