During May, ABC Corporation incurred the following costs on Job A for the manufacture of 2,000 motors (SEE PICTURE BELOW): The cost per unit of this job if the cost to rework was attributable to exacting specification? * Direct materials P42,000.00 80,000.00 Direct labor Factory overhead (150% of DL) 120,000.00 Total P242,000.00 Direct unit cost of reworking 100 units Direct materials per unit Direct labor per unit P20.00 50.00 Total P70.00 O A. P121.00 O B. P121.08 O C. P124.50 O D. P128.25

Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter5: Process Cost Accounting—general Procedures
Section: Chapter Questions
Problem 9E: AAA Appliances Inc. has two production departments. The nature of the process is such that no units...
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QUESTION 40

Cost Accounting
Choose the answer from the choices

During May, ABC Corporation incurred the following costs on Job A for the manufacture of
2,000 motors (SEE PICTURE BELOW):
The cost per unit of this job if the cost to rework was attributable to exacting specification? *
P42,000.00
80,000.00
Direct materials
Direct labor
Factory overhead (150% of
DL)
120,000.00
Total
P242,000.00
Direct unit cost of reworking 100 units
Direct materials per unit
P20.00
Direct labor per unit
50.00
Total
P70.00
O A. P121.00
O B. P121.08
O C. P124.50
O D. P128.25
Transcribed Image Text:During May, ABC Corporation incurred the following costs on Job A for the manufacture of 2,000 motors (SEE PICTURE BELOW): The cost per unit of this job if the cost to rework was attributable to exacting specification? * P42,000.00 80,000.00 Direct materials Direct labor Factory overhead (150% of DL) 120,000.00 Total P242,000.00 Direct unit cost of reworking 100 units Direct materials per unit P20.00 Direct labor per unit 50.00 Total P70.00 O A. P121.00 O B. P121.08 O C. P124.50 O D. P128.25
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