The Holland Table Corporation manufactures dining tables and chairs. During the manufacturing process, a Job Cost sheet is prepared. The cost sheet for 150 units of dining tables shows $10, 500.00 for direct materials, $5, 500 for direct labor, and $8, 000 for factory overhead. What is the cost per unit?

INTRODUCTION TO COST ACCOUNTING

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

A	$160.00
B	$70.00
C	$90.00
D	$120.00

Explanation:

Detailed explanation-1: -Cost per unit = (Electricity + Rent + Labor + Raw materials) / Number of units.

Detailed explanation-2: -What Is The Formula Of Manufacturing Cost? The formula for manufacturing cost is the sum of direct materials, direct labor, and manufacturing overheads.

Detailed explanation-3: -Direct Costs A direct cost includes raw materials, labor, and expense or distribution costs associated with producing a product. The cost can easily be traced to a product, department, or project. For example, Ford Motor Company (F) manufactures cars and trucks. A plant worker spends eight hours building a car.

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