Question

Newhard Company assigns overhead cost to jobs on the basis of 111% of direct labor cost. The job cost sheet for Job 313 includes $27,656 in direct materials cost and $10,400 in direct labor cost. A total of 1,550 units were produced in Job 313. Required: a. What is the total manufacturing cost assigned to Job 313? b. What is the unit product cost for Job 313?

Answer 1

Answer:

a. The total manufacturing cost assigned to Job 313 is $49,600

b.  The unit product cost for Job 313 is $32

Explanation:

a. The computation of the total manufacturing cost is shown below:

= Direct materials cost + direct labor cost + overhead cost

= $27,656 + $10,400 + 111% of direct labor cost

= $27,656 + $10,400 + $11,544

= $49,600

b. The formula to be used for calculating the unit product cost which is shown below

= Total manufacturing cost ÷ number of units produced

=  $49,600 ÷ 1,550 units

= $32