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Welcome to the article Newhard Company assigns overhead cost to jobs on the basis of tex 125 tex of direct labor cost The job cost sheet for Job 313. 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 [tex]125\%[/tex] of direct labor cost. The job cost sheet for Job 313 includes [tex]\$10,000[/tex] in direct materials cost and [tex]\$12,000[/tex] in direct labor cost. A total of 1,000 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?

\begin{tabular}{|l|l|}
\hline
a. Total manufacturing cost & \\
\hline
b. Unit product cost & \\
\hline
\end{tabular}

Answer :

Sure! Let's break down the solution to find the total manufacturing cost and the unit product cost for Job 313 step-by-step.

### Given Data:
1. Direct materials cost: [tex]$10,000
2. Direct labor cost: $[/tex]12,000
3. Overhead rate: 125% of direct labor cost
4. Total units produced: 1,000 units

### Step-by-Step Solution:

#### Part (a): Calculate the Total Manufacturing Cost

1. Calculate the overhead cost:
- The overhead rate is 125% of the direct labor cost.
- To find the overhead cost, multiply the direct labor cost by the overhead rate:
[tex]\[
\text{Overhead Cost} = \text{Direct Labor Cost} \times 125\%
\][/tex]
Calculating it, we have:
[tex]\[
\text{Overhead Cost} = 12,000 \times 1.25 = 15,000
\][/tex]

2. Calculate the total manufacturing cost:
- The total manufacturing cost is the sum of the direct materials cost, direct labor cost, and overhead cost:
[tex]\[
\text{Total Manufacturing Cost} = \text{Direct Materials Cost} + \text{Direct Labor Cost} + \text{Overhead Cost}
\][/tex]
Calculating it, we have:
[tex]\[
\text{Total Manufacturing Cost} = 10,000 + 12,000 + 15,000 = 37,000
\][/tex]

The total manufacturing cost assigned to Job 313 is \[tex]$37,000.

#### Part (b): Calculate the Unit Product Cost

1. Calculate the unit product cost:
- The unit product cost is the total manufacturing cost divided by the total number of units produced:
\[
\text{Unit Product Cost} = \frac{\text{Total Manufacturing Cost}}{\text{Total Units Produced}}
\]
Calculating it, we have:
\[
\text{Unit Product Cost} = \frac{37,000}{1,000} = 37
\]

The unit product cost for Job 313 is \$[/tex]37.

### Summary:
[tex]\[
\begin{tabular}{|l|l|}
\hline
a. & Total manufacturing cost: \$37,000 \\
\hline
b. & Unit product cost: \$37 \\
\hline
\end{tabular}
\][/tex]

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Rewritten by : Brahmana