Question

Newhard Company assigns overhead cost to jobs on the basis of 118% of direct labor cost. The job cost sheet for Job 313 includes $15,238 in direct materials cost and $10,900 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?

Answer 1

a. The total manufacturing cost assigned to Job 313
Direct materials	$15,238
Direct labor	$10,900
Overhead assigned                   [Direct labor cost x 118% = $10,900 x 118%]	$12,862
Total manufacturing cost           [$15,238 + $10,900 + $12,862]	$39,000
b. Unit product cost for Job 313
Total manufacturing cost     [calculated above]                    (a)	$39,000
Units in Job 313                                                                      (b)	1500
Unit product cost                                                                      (a / b)	$26