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28 April, 01:55

Newhard Company assigns overhead cost to jobs on the basis of 111% of direct labor cost. The job cost sheet for Job 313 includes $27,656 in direct materials cost and $10,400 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?

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  1. 28 April, 02:16
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    a. The total manufacturing cost assigned to Job 313 is $49,600

    b. The unit product cost for Job 313 is $32

    Explanation:

    a. The computation of the total manufacturing cost is shown below:

    = Direct materials cost + direct labor cost + overhead cost

    = $27,656 + $10,400 + 111% of direct labor cost

    = $27,656 + $10,400 + $11,544

    = $49,600

    b. The formula to be used for calculating the unit product cost which is shown below

    = Total manufacturing cost : number of units produced

    = $49,600 : 1,550 units

    = $32
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