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Applying Overhead Cost; Computing Unit Product Cost

Newhard Company assigns overhead cost to jobs on the basis of 120% of direct labor cost. The job cost sheet for Job 313 includes $22,660 in direct materials cost and $10,700 in direct labor cost. A total of 1,400 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 :

The manufacturing cost = $22,660 + $10,700 + $12,840 = $46,200 and the unit product cost for Job 313 is $33.

To determine the total manufacturing cost assigned to Job 313, we need to calculate the overhead cost first. The overhead cost is 120% of the direct labor cost, which is $10,700. Thus, the overhead cost is $10,700 * 120% = $12,840.

The total manufacturing cost assigned to Job 313 is the sum of the direct materials cost, direct labor cost, and the overhead cost.

Total manufacturing cost = $22,660 + $10,700 + $12,840 = $46,200.

Therefore, the total manufacturing cost assigned to Job 313 is $46,200.

The unit product cost for Job 313 can be calculated by dividing the total manufacturing cost by the number of units produced.

Unit product cost = Total manufacturing cost / Number of units produced

Unit product cost = $46,200 / 1,400 units = $33 per unit.

Hence, the unit product cost for Job 313 is $33.

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Rewritten by : Brahmana