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Welcome to the article Newhard Company assigns overhead cost to jobs on the basis of 111 of direct labor cost The job cost sheet for Job 313 includes 27. On this page, you will learn the essential and logical steps to better understand the topic being discussed. We hope the information provided helps you gain valuable insights and is easy to follow. Let’s begin the discussion!

Newhard Company assigns overhead cost to jobs on the basis of 111% of direct labor cost. The job cost sheet for Job 313 includes $27,656 in direct materials cost and $10,400 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?

Answer :

Answer:

a. The total manufacturing cost assigned to Job 313 is $49,600

b. The unit product cost for Job 313 is $32

Explanation:

a. The computation of the total manufacturing cost is shown below:

= Direct materials cost + direct labor cost + overhead cost

= $27,656 + $10,400 + 111% of direct labor cost

= $27,656 + $10,400 + $11,544

= $49,600

b. The formula to be used for calculating the unit product cost which is shown below

= Total manufacturing cost ÷ number of units produced

= $49,600 ÷ 1,550 units

= $32

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Rewritten by : Brahmana