Newhard Company assigns overhead cost to jobs on the basis o

Newhard Company assigns overhead cost to jobs on the basis of 111% of direct labor cost. The job cost sheet for Job 313 includes $13,662 in direct materials cost and $10,800 in direct labor cost. A total of 1,350 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?

Solution

Total overhead=(111%*$10800)=$11988

a. total manufacturing cost=Direct materials+Direct labor+Total overheads

=(13662+10800+11988)=$36450

b.unit product cost for Job 313=(36450/1350)=$27