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Welcome to the article Newhard Company assigns overhead cost to jobs on the basis of 114 of direct labor cost The job cost sheet for Job 313 includes 9. 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 114% of direct labor cost. The job cost sheet for Job 313 includes $9,602 in direct materials cost and $10,700 in direct labor cost. A total of 1,250 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 total manufacturing cost assigned to Job 313 is $32,500.The unit product cost for Job 313 is $26 per unit.

a. To calculate the total manufacturing cost assigned to Job 313, we need to determine the overhead cost. The overhead cost is calculated as a percentage of the direct labor cost. In this case, the overhead cost is 114% of the direct labor cost.

Direct labor cost for Job 313: $10,700

Overhead cost (114% of direct labor cost): 1.14 * $10,700 = $12,198

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

Total manufacturing cost = Direct materials cost + Direct labor cost + Overhead cost

Total manufacturing cost = $9,602 + $10,700 + $12,198 = $32,500

Therefore, the total manufacturing cost assigned to Job 313 is $32,500.

b. The unit product cost for Job 313 is calculated by dividing the total manufacturing cost assigned to the job by the number of units produced.

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

Unit product cost = $32,500 / 1,250 units = $26 per unit

Therefore, the unit product cost for Job 313 is $26 per unit.

know more about total manufacturing cost :brainly.com/question/17268819

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Rewritten by : Brahmana