Sep 25, 2017 term paper 2

WHAT IS THE UNIT COST OF THE MOTORS PRODUCED IN JOB 4329?

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Hurst Motors applies overhead based on direct labor hours. In completing the 300 motors in job 4329, the company incurred $10,500 in direct materials and 60 direct labor hours at $15 per hour. The predetermined overhead rate is $65 per direct labor hour. What is the unit cost of the motors produced in job 4329?

  1. $13
  2. $51
  3. $115
  4. $233

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