The Cameron Corporation Manufactures Custom-Made Purses Factory Overhead Is Applied Using a Plant-Wide Rate Based on to Job

Multiple Choice

The Cameron Corporation manufactures custom-made purses. The following data pertains to Job XY5: $\begin{array}{lr}\text { Direct materials placed into production } & \$ 4,000 \\\text { Direct labor hours worked } & 50 \text { hours } \\\text { Direct labor rate per hour } & \$ 15 \\\text { Machine hours worked } & 100 \text { hours }\end{array}$
Factory overhead is applied using a plant-wide rate based on direct labor hours. Factory overhead was budgeted at $80,000 for the year and the direct labor hours were estimated to be 20,000. Job XY5 consists of 50 units.
What is the labor cost per unit for Job XY5?

A) $4
B) $15
C) $0.80
D) $40