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Computation of Product Unit Cost

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Style Corporation manufactures specialty lines of women's apparel. During February, the company worked on three special orders: A-25, A-27, and B-14. Cost and production data for each order are as follows:
A-25 A-27 B-14
Direct Materials
Fabric Q $10,800 $12,980 $17,660
Fabric Z $11,400 $12,200 $13,440
Fabric YB $ 5,260 $ 6,920 $10,900
Direct Labor
Garment Maker $ 8,900 $10,400 $16,200
Layout $ 6,450 $ 7,425 $ 9,210
Packaging $ 3,950 $ 4,875 $ 6,090
Overhead
(120% of direct labor costs) ? ? ?
Number of units produced 700 775 1,482

1. Compute the total cost associated with each job. Show the subtotals for each cost category.
2. Compute the product unit cost for each job. (Round up to the nearest cent)

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Solution Summary

The solution explains how to calculate the product unit cost. The total cost associated with each jobs are determined.

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