Homework SourseA company assigns overhead cost to completed jobs on the bas
A company assigns overhead cost to completed jobs on the basis of 111% of direct labor cost.The job cost sheet for Job 313 shows $15,434 in direct materials has been used on the job and that $10,600 in direct labor cost has been incurred. A total of 1,350 units were produced in Job 313.
| A company assigns overhead cost to completed jobs on the basis of 111% of direct labor cost.The job cost sheet for Job 313 shows $15,434 in direct materials has been used on the job and that $10,600 in direct labor cost has been incurred. A total of 1,350 units were produced in Job 313. |
Solution
Total overhead =(111%*$10600)=$11766
a.Total manufacturing cost=Direct materials+Direct labor+Total overhead
=(15434+10600+11766)
=$37800
b.Unit product cost=(37800/1350)
=$28
