(TCO 6) During September 20XX, Stutz Company incurred the following costs on Job

Question

(TCO 6) During September 20XX, Stutz Company incurred the following costs on Job 924 for the manufacture of 600 scoreboard clocks. Original cost accumulation: $2,250 Direct materials 1,800 Direct manufacturing labor 2,700 Manufacturing overhead (150% of direct manufacturing labor) $6,750 Direct costs of reworked 15 units: $150 Direct materials 240 Direct manufacturing labor $390 The rework costs were attributable to exacting specifications of Job 924, and the full rework costs were charged to the specific job. The cost per finished unit of Job 924 was (Points : 6) $12.50. $11.25. $11.61. $11.90.

Explanation / Answer

The cost per finished unit of Job 924=Cost incurred+The rework costs were attributable to exacting specifications of Job 924/600 units=$6,750+$390/600=$11.90 per score board

So option $11.90

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