Essay
Franta Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on direct labor-hours.The company based its predetermined overhead rate for the current year on 70,000 direct labor-hours,total fixed manufacturing overhead cost of $238,000,and a variable manufacturing overhead rate of $2.70 per direct labor-hour.Job P873,which was for 50 units of a custom product,was recently completed.The job cost sheet for the job contained the following data:
Required:
Calculate the unit product cost for Job P873.
Correct Answer:

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