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Crows Ltd has a job order and the following data have been recorded on its job cost sheet: Direct material $150,000 Direct labour hours 3,000
Crows Ltd has a job order and the following data have been recorded on its job cost sheet: Direct material $150,000 Direct labour hours 3,000 Direct labour rate $30 Machine hours 4,000 Number of units completed 10,000 Crows Lid applied manufacturing overhead on the basis of machine hours and the predetermined overhead rate is $20 per machine hour. The management accountant a has stated the selling price of this product is $40. The average industry mark up on this product is 30%. Required: Compute the unit product cost and advise the management of Crows Ltd whether this job is profitable
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