The following data have been recorded on its job cost sheet:

Direct materials	$	48,870
Direct labor-hours		405	labor-hours
Direct labor wage rate	$	13	per labor-hour
Machine-hours		486	machine-hours
Number of units completed		2,700	units

The company applies manufacturing overhead on the basis of machine-hours. The predetermined overhead rate is $11 per machine-hour.

Required:

Compute the unit product cost that would appear on the job cost sheet for this job.

Answer:

Cost Summary

Direct materials	$	48,870
Direct labor ($13 per DLH 405 DLHs)		5,265
Manufacturing overhead ($11 per MH 486 MHs)		5,346
Total product cost	$	59,481
Unit product cost	$	22.03