Yahoo Answers is shutting down on May 4th, 2021 (Eastern Time) and beginning April 20th, 2021 (Eastern Time) the Yahoo Answers website will be in read-only mode. There will be no changes to other Yahoo properties or services, or your Yahoo account. You can find more information about the Yahoo Answers shutdown and how to download your data on this help page.

Managerial accounting/algebra help?

So this problem is confusing me a little. It's related to Job-Order Costing and says:

"Job 218 was one of the many jobs started and completed during the year. The job required $3,600 in direct materials and 400 hours of direct labor time at a rate of $11 per hour. If the job contained 500 units and the company billed at 75% above the unit product cost on the job cost sheet, what price per unit would have been charged to the customer?"

So I know that unit product cost = total product cost (which is direct materials+direct labor+factory overhead) / number of units

But I don't have the factory overhead amount so how do I solve for the unit product cost?! I'll admit I haven't done algebra in a while... I tried the whole isolating the one variable in order to find the other and coming to the answer that way but then that failed, but I don't know if it's because I wrote the equation wrong. When I tried that, I used:

.75y+y=(3,600+4,400+x)/500

And got y=1 but that doesn't make any sense because that should be the unit product cost.

What am I doing wrong? What am I not seeing?

Thanks in advance for the help!

1 Answer

Relevance
  • M3
    Lv 7
    8 years ago
    Favorite Answer

    with the given info,

    cost/unit = (3,600+4,400)/500 = $16

    price/unit charged = 1.75*16 = $28 <------

Still have questions? Get your answers by asking now.