Welcome to the article Exercise 2 8 Applying Overhead Cost Computing Unit Product Cost LO2 2 LO2 3 Newhard Company assigns overhead cost to jobs on the basis of. 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!
Answer :
a. Total manufacturing cost:The direct labor cost is $10,900, therefore, the overhead assigned to Job 313 is 116% of $10,900, or $12,644 ($10,900 × 116%).
Total manufacturing cost assigned to Job 313 is $18,056 + $10,900 + $12,644 = $41,600b. Unit product cost:The unit product cost for Job 313 is the total manufacturing cost assigned to the job divided by the number of units produced.Unit product cost for Job 313 is $41,600 ÷ 1,600 = $26.00Thus, the total manufacturing cost assigned to Job 313 is $41,600 and the unit product cost for Job 313 is $26.00.
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