Job 5432 Was Recently Completed The Company Applies Manufacturing Overhead on the Basis of Direct

question 50

Essay

Job 5432 was recently completed. The following data have been recorded on its job cost sheet:
$\begin{array}{lc}\text { Direct materials } & \$ 40,610 \\\text { Direct labor-hours } & 1,147 \mathrm{DLHs} \\\text { Direct labor wage rate } & \$ \quad11 \text { per DLH } \\\text { Number of units completed } & 3,10 0\text { units }\end{array}$

The company applies manufacturing overhead on the basis of direct labor-hours. The predetermined overhead rate is $20 per direct labor-hour.
Required:
Compute the unit product cost that would appear on the job cost sheet for Job 5432.

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Definitions:

Material Variances

The difference between the actual cost of materials used in production and the standard cost of materials that should have been used.

Quantity Variance

The difference between the expected and actual quantity of materials or labor used in a production process.

Price Variance

Price variance is the difference between the actual price paid for something and its expected price, affecting the budget for materials or expenses.