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Problem - Irene Manufacturing uses a predetermined overhead allocation rate based on percentage of direct labor cost. At the beginning of 2014, the company estimated total manufacturing overhead costs at $1,010,000 and total dire labor costs at $820,000. In June, 2014, Job 711 was completed. The details of Job 711 are shown below.
Direct materials cost $27,500
Direct labor cost $11,000
Direct labor hours 500 hours
Units of product produced 400
Required - How much was the cost per unit of finished product?
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