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Welcome to the article Newhard Company assigns overhead cost to jobs on the basis of 115 of direct labor cost The job cost sheet for Job 313 includes 17. 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 115% of direct labor cost. The job cost sheet for Job 313 includes $17,510 in direct materials cost and $10,600 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

Answer :

A) The total manufacturing cost assigned to Job 313 is $37,000

B) Unit product cost for Job 313 is $37

According to the Question,

The Newhard Company bases its allocation of overhead expenses on 125% of the cost of direct labor.

The direct material costs for Job 313 are $10,000, While the direct labor costs are $12,000, according to the job cost sheet.

  • In total, Job 313 produced 1,000 units.

A) Direct materials plus direct labor + manufacturing overhead equals manufacturing costs.

  • Costs of production = $10,000 + $12,000 + (12000× 1.25) = $37,000

B) Unitary cost = 37000 ÷ 1000 = $37

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Rewritten by : Brahmana