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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