Figure 5 - 2

Multiple Choice

Figure 5 - 2
The Cameron Corporation manufactures custom-made purses. The following data pertains to Job XY5:
Direct materials placed into production $4,000
Direct labor hours worked 50 hours
Direct labor rate per hour $ 15
Machine hours worked 100 hours
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.
-Refer to Figure 5-2. What is the labor cost per unit for Job XY5?

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