When Job 117 was completed, direct materials to ob 117 was completed, direct materials totaled $4.400: direct labor, $5,600, and factory overhead, $2,400. A total of 1.000 units were produced at a per-unit cost of

a. $12,400

b. $1,240

c. S124

d. $12.40

The correct answer is D.

Explanation:

Giving the following information:

direct materials totaled $4,400

direct labor, $5,600

factory overhead, $2,400.

A total of 1,000 units were produced

First, we need to calculate the total cost:

Total cost= direct material + direct labor + allocated overhead

TC= 4,400 + 5,600 + 2,400= $12,400

Now, we can calculate the unitary cost:

Unitary cost= 12,400/1,000= $12.4

d. $ 12.40

Explanation:

Computation of Per Unit Cost

Direct materials                                         $ 4,400

Direct labor                                                $ 5,600

Factory Overhead                                      $ 2,400

Total manufacturing costs                        $ 12,400

Units produced                                            1000 units

Cost per unit = Total manufacturing costs/ No of Units produced

Cost per unit = $ 12,400 / 1000        = $ 12.40 per unit