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

question 24

Essay

Job 5432 was recently completed.The following data have been recorded on its job cost sheet:
$$\begin{array} { | l | r | } \hline \text { Direct materials } & \$ 40,610 \\\hline \text { Direct labor-hours } & 1,147 \mathrm { DLHs } \\\hline \text { Direct labor wage rate } & \$ 11 \text { per } \mathrm { DLH } \\\hline \text { Number of units completed } & 3,100 \text { units } \\\hline\end{array}$$
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:

Contribution Margin

Contribution Margin is the difference between sales revenue and variable costs of production, indicating how much revenue contributes to fixed costs and profit.

Contribution Format

A financial reporting format that highlights the contribution margin, used primarily in internal decision-making processes.

Income Statement

A financial report detailing a firm's income and expenditures within a certain timeframe, resulting in the total earnings or deficit experienced during that interval.

Net Operating Income

The income generated from normal business operations after deducting operating expenses but before interest and taxes.