Question

Newhard Company assigns overhead cost to jobs on the basis of 112% of direct labor cost. The job cost sheet for Job 313 includes $19.952 in direct materials cost and $10.400 in direct labor cost. A total of 1,500 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? Skipped eBook a. Total manufacturing cost b. Unit product cost References

Answer 1

Question 1 :

(a) Calculation of total manufacturing cost assigned to Job 313

Total manufacturing cost = Direct Materials cost + Direct Labor cost + Overhead cost

Here, Overhead costs are allocated at 112% of Direct labor cost.

So Overhead cost assigned to Job 313 = 112% * Direct labor cost = $10,400 * 112% = $11,648

Total manufacturing cost = Direct Materials cost + Direct Labor cost + Overhead cost

                                    = $19,952 + $10,400 + $11,648

                                    = $42,000

(b) Calculation of unit product cost for Job 313

Unit Product Cost = Total manufacturing cost / No. of units produced

                          = $42,000 / 1500

                          = $28 per unit

a	Total Manufacturing Cost	$42,000
b	Unit Product cost	$28 per Unit