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The STU Company manufactures toys. One order from Mr. ABC for 5, 000 units showed the following costs per unit: Direct materials Direct labor P 3.50 P 1.25 Manufacturing overhead at 140% of direct labor cost if defected work is charged to the job, 150% if it is not. Final inspection revealed that 250 of the units were improperly manufactured. These units were disassembled, and properly manufactured. The per unit cost of correcting the defective products consists of P 0.15 for materials, P 0.25 for direct labor, and manufacturing overhead at the predetermined rate. 1. What is the cost per unit produced, assuming that the rework costs is charged to the customer, Mr. ABC? a. P 6.5375 C. P 6.6250 P 7.2500 b. P 6.5385 d. 2. What is the cost per unit produced, assuming that the rework costs is charged to Factory overhead Control? a. P 6.8250 C. P 6.5375 b. P 6.6250 d. P 7.4000

The STU Company manufactures toys. One order from Mr. ABC for 5, 000 units showed the following costs per unit: Direct materials Direct labor P 3.50 P 1.25 Manufacturing overhead at 140% of direct labor cost if defected work is charged to the job, 150% if it is not. Final inspection revealed that 250 of the units were improperly manufactured. These units were disassembled, and properly manufactured. The per unit cost of correcting the defective products consists of P 0.15 for materials, P 0.25 for direct labor, and manufacturing overhead at the predetermined rate. 1. What is the cost per unit produced, assuming that the rework costs is charged to the customer, Mr. ABC? a. P 6.5375 C. P 6.6250 P 7.2500 b. P 6.5385 d. 2. What is the cost per unit produced, assuming that the rework costs is charged to Factory overhead Control? a. P 6.8250 C. P 6.5375 b. P 6.6250 d. P 7.4000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The STU Company manufactures toys. One order from Mr. ABC for 5, 000 units showed the following costs per unit: Direct materials P 3.50 Direct labor P 1.25 Manufacturing overhead at 140% of direct labor cost if defected work is charged to the job, 150% if it is not. Final inspection revealed that 250 of the units were improperly manufactured. These units were disassembled, and properly manufactured. The per unit cost of correcting the defective products consists of P 0.15 for materials, P 0.25 for direct labor, and manufacturing overhead at the predetermined rate. 1. What is the cost per unit produced, assuming that the rework costs is charged to the customer, Mr. ABC? a. C. P 6.5375 b. P 6.5385 P 6.6250 P 7.2500 d. 2. What is the cost per unit produced, assuming that the rework costs is charged to Factory overhead Control? P 6.8250 a. b. P 6.6250 C. P 6.5375 d. P 7.4000
Transcribed Image Text:The STU Company manufactures toys. One order from Mr. ABC for 5, 000 units showed the following costs per unit: Direct materials P 3.50 Direct labor P 1.25 Manufacturing overhead at 140% of direct labor cost if defected work is charged to the job, 150% if it is not. Final inspection revealed that 250 of the units were improperly manufactured. These units were disassembled, and properly manufactured. The per unit cost of correcting the defective products consists of P 0.15 for materials, P 0.25 for direct labor, and manufacturing overhead at the predetermined rate. 1. What is the cost per unit produced, assuming that the rework costs is charged to the customer, Mr. ABC? a. C. P 6.5375 b. P 6.5385 P 6.6250 P 7.2500 d. 2. What is the cost per unit produced, assuming that the rework costs is charged to Factory overhead Control? P 6.8250 a. b. P 6.6250 C. P 6.5375 d. P 7.4000
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