Newhard Company assigns overhead cost to jobs on the basis o

Newhard Company assigns overhead cost to jobs on the basis of 110% of direct labor cost. The job cost sheet for Job 313 includes $24,450 in direct materials cost and $10,500 in direct labor cost. A total of 1,550 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? a. Total manufacturing cost b. Unit product cost

Solution

Total overhead=(110%*$10500)=$11550

1.Total manufacturing cost=Direct materials+Direct labor+Total overhead

=24450+10500+11550

=$46500.

2.Unit product cost=(46500/1550)=$30.