Paulson Company uses a predetermined overhead rate based on machine-hours to apply manufacturing overhead to jobs.The company has provided the following estimated costs for next year:
| Direct materials |
$33,000 |
| Direct labor |
$30,000 |
| Advertising expense |
$23,000 |
| Rent on factory building |
$21,500 |
| Depreciation on factory equipment |
$14,500 |
| Indirect materials |
$18,000 |
| Sales salaries |
$36,000 |
| Insurance on factory equipment |
$20,000 |
Paulson estimated that 48,000 direct labor-hours and 28,000 machine-hours would be worked during the year. The predetermined overhead rate per machine-hour will be:
| Job 827 was recently completed. The following data have been recorded on its job cost sheet: |
|
|
|
|
| Direct materials |
$ |
60,100 |
|
| Direct labor-hours |
|
1,340 |
labor-hours |
| Direct labor wage rate |
$ |
14.7 |
per labor-hour |
| Machine-hours |
|
1,483 |
machine-hours |
| Number of units completed |
|
3,550 |
units |
|
|
The company applies manufacturing overhead on the basis of machine-hours. The predetermined overhead rate is $13.7 per machine-hour.
|
| Required: |
|
Compute the unit product cost that would appear on the job cost sheet for this job. (Do not round intermediate calculations and round your final answer to 2 decimal places. Omit the "$" sign in your response.)
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