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

question 46

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 labor cost per unit for Job XY5?

• A)$4
• B)$15
• C)$0.80
• D)$40

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Definitions:

Intensity

The level of effort or exertion required by a physical activity or exercise, often categorized as low, moderate, or high.

Mitochondria

Organelles found in most cells, responsible for producing energy by converting food into adenosine triphosphate (ATP) through the process of oxidative phosphorylation.

Sarcoplasmic Reticulum

A structure found within muscle cells that stores and releases calcium ions, playing a key role in muscle contraction.

Myofibrils

The basic rod-like units of a muscle cell that are essential for muscle contraction and movement.