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Welcome to the article Newhard Company assigns overhead cost to jobs on the basis of 112 of direct labor cost The job cost sheet for Job 313 includes 24. 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 112% of direct labor cost. The job cost sheet for Job 313 includes $24,664 in direct materials cost and $10,300 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 :

Final answer:

The total manufacturing cost for Job 313 is $46,500, and the unit product cost is $30 per unit. Overhead cost is calculated at 112% of direct labor cost, added to direct materials and labor costs.

Explanation:

The student has asked to calculate the total manufacturing cost assigned to Job 313 as well as the unit product cost for the same job. Newhard Company uses a predetermined overhead rate of 112% of direct labor cost to assign overhead costs to jobs.

To calculate the total manufacturing cost for Job 313, we first need to calculate the overhead costs:

  • Overhead Costs = 112% of Direct Labor Cost
  • Overhead Costs = 1.12 × $10,300 = $11,536

Now, we add the direct materials cost, direct labor cost, and overhead costs together:

  • Total Manufacturing Cost = Direct Materials + Direct Labor + Overhead Costs
  • Total Manufacturing Cost = $24,664 + $10,300 + $11,536 = $46,500

Then, to find the unit product cost for Job 313, we divide the total manufacturing cost by the number of units produced:

  • Unit Product Cost = Total Manufacturing Cost / Number of Units Produced
  • Unit Product Cost = $46,500 / 1,550 units = $30 per unit

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Rewritten by : Brahmana