Managerial Accounting question

Question

Parker Manufacturing, Inc. employs an overhead rate of 160% of direct labor cost. The Job 180 cost sheet shows that $10,000 in direct materials has been used and that $11,000 in direct labor has been incurred. If 1,000 units of product have been produced on Job 180, what is the unit cost of the product?

Answer 1

1. Direct Materials = $10,000
2. Direct Labor = $11,000
3. Overhead Rate = 160% of Direct Labor
4. Units Produced = 1,000 units

Overhead=160%×11,000=1.6×11,000=17,600

Total Cost=Direct Materials + Direct Labor+ Overhead

Total Cost=10,000+11,000+17,600=38,600

Total Cost = 10,000 + 11,000 + 17,600 = 38,600Total Cost=10,000+11,000+17,600=38,600

Unit Cost=Total Cost​ / Number of Units

=38,600 / 1000 ​=38.60

✅ Final Answer: $38.60 per unit