A company assigns overhead cost to completed jobs on the bas

A company assigns overhead cost to completed jobs on the basis of 117% of direct labor cost.The job cost sheet for Job 313 shows that $21,798 in direct materials has been used on the job and that $10,600 in direct labor cost has been incurred. A total of 1,400 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=(117%*$10600)=$12402

a.Total manufacturing cost=(Direct materials+Direct labor+Total overhead)

=(21798+10600+12402)=$44800

b.Unit product cost=(44800/1400)=$32