# 5

During June, a company produced 10 units of part number A3X1. The cost information related to A3X1 includes the following:

Materials beginning inventory $4,000

Direct material used $3,000 (3,000 machine hours used)

Direct labor used $2,000 (15 total hours spent )

Selling cost $1,000

Total actual overhead $8,000

What is the cost per unit of number A3X1 if the company applies overhead at a predetermined rate of $150 per machine hour?

$500

$950

$1,050

$1,350