Newhard Company assigns overhead cost to jobs on the basis o

Newhard Company assigns overhead cost to jobs on the basis of 113% of direct labor cost. The job cost sheet for Job 313 includes $33,848 in direct materials cost and $10,400 in direct labor cost. A total of 1,600 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

Overhead assigned

= Direct labor cost x 113%

= $10,400 x 113%

= $11,752

a)

So, Total manufacturing cost

= Direct material + Direct labor + Overhead

= $33,848 + $10,400 + $11,752

= $56,000

b)

Unit product cost

= Total manufacturing cost / Number of units manufactured

= $56,000 / 1,600

= $35 per unit