The company applies manufacturing overhead on the basis of machine-hours. The predetermined overhead rate is $10 per machine-hour. Compute the unit product cost that would appear on the job cost sheet for this job.
To compute the unit product cost for this job, we need to consider the number of machine-hours required for the job.
The formula to calculate the unit product cost is:
Unit Product Cost = Direct Materials + Direct Labor + Manufacturing Overhead
In this case, we are given that the manufacturing overhead is applied on the basis of machine-hours and the predetermined overhead rate is $10 per machine-hour.
To determine the manufacturing overhead cost, we need to know the number of machine-hours used for the job. Let's assume that the job required 8 machine-hours.
Manufacturing Overhead = Predetermined Overhead Rate × Machine Hours
Manufacturing Overhead = $10 × 8 = $80
As we do not have the information about the direct materials or direct labor, we cannot calculate those costs. Therefore, we can only calculate the manufacturing overhead cost in this case.
Now, we can calculate the unit product cost:
Unit Product Cost = Direct Materials + Direct Labor + Manufacturing Overhead
Unit Product Cost = Unknown + Unknown + $80
Without the information about the direct materials and direct labor, we cannot determine the complete unit product cost for this job. We need additional information to calculate those costs.