The Cameron Corporation Manufactures Custom-Made Purses Factory Overhead Is Applied Using a Plant-Wide Rate Based on to Job

question 37

Multiple Choice

The Cameron Corporation manufactures custom-made purses. The following data pertains to Job XY5: $\begin{array}{lr}\text { Direct materials placed into production } & \$ 4,000 \\\text { Direct labor hours worked } & 50 \text { hours } \\\text { Direct labor rate per hour } & \$ 15 \\\text { Machine hours worked } & 100 \text { hours }\end{array}$
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?

• A)$267
• B)$80
• C)$40
• D)$4

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Definitions:

African Apes

A group of apes that reside primarily in Africa, including gorillas, chimpanzees, and bonobos, known for their close genetic and behavioral links to humans.

First Mammals

Early ancestors in the mammal lineage that appeared during the Mesozoic era, showcasing traits distinct from their reptilian forebears.

Neandertal

Refers to an extinct species of humans (Homo neanderthalensis) known for their robust build and distinct skeletal features, closely related to modern humans.

Modern Human Line

Refers to the evolutionary lineage that led to Homo sapiens, emphasizing the development and characteristics that define modern humans.