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Cost Component Amount Direct Materials $300,000 Direct Labor $200,000 Manufacturing Overhead $150,000 XYZ Manufacturing undertakes a custom production job that incurs direct materials costs of


Cost Component

Amount

Direct Materials

$300,000

Direct Labor

$200,000

Manufacturing Overhead

$150,000

XYZ Manufacturing undertakes a custom production job that incurs direct materials costs of $300,000, direct labor costs of $200,000, and manufacturing overhead costs of $150,000. Calculate the total manufacturing cost per unit for this job, assuming 2,500 units were produced. Present your calculations and discuss the significance of job order costing for custom manufacturing projects.

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